[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 667 Placed on Calendar Senate (PCS)]
Calendar No. 60
109th CONGRESS
1st Session
S. 667
To reauthorize and improve the program of block grants to States for
temporary assistance for needy families, improve access to quality
child care, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 17, 2005
Mr. Grassley, from the Committee on Finance, reported the following
original bill; which was read twice and placed on the calendar
_______________________________________________________________________
A BILL
To reauthorize and improve the program of block grants to States for
temporary assistance for needy families, improve access to quality
child care, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Personal Responsibility and
Individual Development for Everyone Act'' or the ``PRIDE Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
TITLE I--TANF
Sec. 101. State plan.
Sec. 102. Family assistance grants.
Sec. 103. Promotion of family formation and healthy marriage.
Sec. 104. Supplemental grant for population increases in certain
States.
Sec. 105. Bonus to reward employment achievement.
Sec. 106. Contingency fund.
Sec. 107. Use of funds.
Sec. 108. Repeal of Federal loan for State welfare programs.
Sec. 109. Work participation requirements.
Sec. 110. Universal engagement and family self-sufficiency plan
requirements; other prohibitions and
requirements.
Sec. 111. Penalties.
Sec. 112. Data collection and reporting.
Sec. 113. Direct funding and administration by Indian tribes.
Sec. 114. Research, evaluations, and national studies.
Sec. 115. Study by the census bureau.
Sec. 116. Funding for child care.
Sec. 117. Definitions.
Sec. 118. Responsible fatherhood program.
Sec. 119. Additional grants.
Sec. 120. Technical corrections.
TITLE II--ABSTINENCE EDUCATION
Sec. 201. Extension of abstinence education program.
TITLE III--CHILD SUPPORT
Sec. 301. Distribution of child support collected by States on behalf
of children receiving certain welfare
benefits.
Sec. 302. Mandatory review and adjustment of child support orders for
families receiving TANF.
Sec. 303. Report on undistributed child support payments.
Sec. 304. Decrease in amount of child support arrearage triggering
passport denial.
Sec. 305. Use of tax refund intercept program to collect past-due child
support on behalf of children who are not
minors.
Sec. 306. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce
obligations.
Sec. 307. Improving Federal debt collection practices.
Sec. 308. Maintenance of technical assistance funding.
Sec. 309. Maintenance of Federal parent locator service funding.
Sec. 310. Identification and seizure of assets held by multistate
financial institutions.
Sec. 311. Information comparisons with insurance data.
Sec. 312. Tribal access to the Federal parent locator service.
Sec. 313. Reimbursement of secretary's costs of information comparisons
and disclosure for enforcement of
obligations on higher education act loans
and grants.
Sec. 314. Technical amendment relating to cooperative agreements
between States and Indian tribes.
Sec. 315. Claims upon longshore and harbor workers' compensation for
child support.
Sec. 316. State option to use Statewide automated data processing and
information retrieval system for interstate
cases.
Sec. 317. State law requirement concerning the Uniform Interstate
Family Support Act (UIFSA).
Sec. 318. Grants to States for access and visitation programs.
Sec. 319. Timing of corrective action year for State noncompliance with
child support enforcement program
requirements.
Sec. 320. Requirement that State child support enforcement agencies
seek medical support for children from
either parent.
Sec. 321. Notice to State child support enforcement agency from health
care plan administrator under certain
circumstances when a child loses health
care coverage.
Sec. 322. Authority to continue State program for monitoring and
enforcement of child support orders.
Sec. 323. Technical amendment relating to information comparisons and
disclosure to assist in Federal debt
collection.
TITLE IV--CHILD WELFARE
Sec. 401. Extension of authority to approve demonstration projects.
Sec. 402. Removal of Commonwealth of Puerto Rico IV-E funds from
limitation on payments.
Sec. 403. Authority of Indian tribes to receive Federal funds for
foster care and adoption assistance.
Sec. 404. Technical correction.
TITLE V--SUPPLEMENTAL SECURITY INCOME
Sec. 501. Review of State agency blindness and disability
determinations.
Sec. 502. Temporary expansion of length of time-limited eligibility of
qualified aliens for supplemental security
income benefits.
TITLE VI--TRANSITIONAL MEDICAL ASSISTANCE
Sec. 601. Extension and simplification of the transitional medical
assistance program (TMA).
TITLE VII--EFFECTIVE DATE
Sec. 701. Effective date.
Sec. 702. Extension through remainder of fiscal year 2005.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the amendment or repeal shall be
considered to be made to a section or other provision of the Social
Security Act.
TITLE I--TANF
SEC. 101. STATE PLAN.
(a) Performance Improvement.--Section 402(a) (42 U.S.C. 602(a)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by redesignating clause (vi) as clause
(vii); and
(ii) by striking clause (v) and inserting
the following:
``(v) Establish specific measurable
performance objectives for pursuing the
purposes of the program funded under this part
or with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)) as
described in section 401(a), including by--
``(I) establishing objectives (as
determined by the State) after giving
consideration to the criteria used by
the Secretary in establishing
performance targets under section
403(a)(4)(C) (with respect to workplace
attachment and advancement), and such
additional criteria related to other
purposes of the program under this part
as described in section 401(a) as the
Secretary, in consultation with the
National Governors' Association, the
National Conference of State
Legislatures, and the American Public
Human Services Association, shall
establish; and
``(II) describing the methodology
that the State will use to measure
State performance in relation to each
such objective.
``(vi) Describe any strategies and programs
the State is using or plans to use to address--
``(I) employment retention and
advancement for recipients of
assistance under the program, including
placement into high-demand jobs, and
whether the jobs are identified using
labor market information;
``(II) efforts to reduce teen
pregnancy;
``(III) services for struggling and
noncompliant families, and for clients
with special problems; and
``(IV) program integration,
including the extent to which
employment and training services under
the program are provided through the
One-Stop delivery system created under
the Workforce Investment Act of 1998,
and the extent to which former
recipients of such assistance have
access to additional core, intensive,
or training services funded through
such Act.''; and
(B) in subparagraph (B)--
(i) by striking clauses (i) and (iv);
(ii) by redesignating clauses (ii) and
(iii) as clauses (i) and (ii), respectively;
and
(iii) by inserting after clause (ii) (as so
redesignated by clause (ii)) the following:
``(iii) If the State is undertaking any
strategies or programs to engage faith-based
organizations in the delivery of services
funded under this part, or that otherwise
relate to section 104 of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, the document shall
describe such strategies and programs.
``(iv) The document shall describe
strategies to improve program management and
performance.
``(v) The document shall include, to the
extent applicable with respect to each program
that provides assistance that will be funded
under this part or with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)), a description of--
``(I) the applicable financial and
nonfinancial eligibility rules for
assistance provided under the program,
including income eligibility
thresholds, the treatment of earnings,
asset eligibility rules, and excluded
forms of income;
``(II) the amount of assistance
provided to needy families, and the
methodology for determining assistance
amounts; and
``(III) the applicable time limit
policies, including the length of the
time limit, exemption and extension
policies, and procedures for providing
services to families reaching the time
limit and who have lost assistance due
to time limits.
``(vi) The document shall set forth the
criteria for applying section 407(c)(6)(E) to
an adult recipient or minor child head of
household who is the parent or caretaker
relative for a child or adult dependent for
care.
``(vii) The document shall describe how the
State informs families receiving assistance
under the State program funded under this part
that do not include an adult or minor child
head of household of the information required
to be provided to other families under section
408(b)(2)(G) (relating to work support and
other assistance for which the family may be
eligible).'';
(2) in paragraph (4), by inserting ``and tribal'' after
``local'' each place it appears; and
(3) by adding at the end the following:
``(8) Certification of consultation on provision of
transportation aid.--In the case of a State that provides
transportation aid under the State program, a certification by
the chief executive officer of the State that State and local
transportation agencies and planning bodies have been consulted
in the development of the plan.''.
(b) Procedures for Submitting and Amending State Plans.--
(1) In general.--Subsection (b) of section 402 (42 U.S.C.
602(b)) is amended to read as follows:
``(b) Procedures for Submitting and Amending State Plans.--
``(1) Standard state plan format.--The Secretary shall,
after notice and public comment, develop a proposed Standard
State Plan Form to be used by States under subsection (a) and
for purposes of filing an amendment to the State plan in
accordance with paragraph (5). Such form shall be finalized by
the Secretary for use by States not later than 9 months after
the date of enactment of the Personal Responsibility and
Individual Development for Everyone Act.
``(2) Requirement for completed plan using standard state
plan format by fiscal year 2007.--Notwithstanding any other
provision of law, each State shall submit a complete State
plan, using the Standard State Plan Form developed under
paragraph (1), not later than October 1, 2006, and all
subsequent State plan submissions, including any State plan
amendments, shall be made using such form.
``(3) Public notice and comment.--Prior to submitting a
State plan to the Secretary under this section, the State
shall--
``(A) make the proposed State plan available to the
public through an appropriate State maintained Internet
website and through other means as the State determines
appropriate;
``(B) allow for a reasonable public comment period
of not less than 45 days; and
``(C) make comments received concerning such plan
or, at the discretion of the State, a summary of the
comments received available to the public through such
website and through other means as the State determines
appropriate.
``(4) Public availability of state plan.--A State shall
ensure that the State plan that is in effect for any fiscal
year is available to the public through an appropriate State
maintained Internet website and through other means as the
State determines appropriate.
``(5) Amending the state plan.--A State shall file an
amendment to the State plan with the Secretary if the State
determines that there has been a material change in any
information required to be included in the State plan or any
other information that the State has included in the plan,
including substantial changes in the use of funding. Prior to
submitting an amendment to the State plan to the Secretary, the
State shall--
``(A) make the proposed amendment available to the
public as provided for in paragraph (3)(A);
``(B) allow for a reasonable public comment period
of not less than 45 days; and
``(C) make the comments available as provided for
in paragraph (3)(C).
``(6) State option to delay submission of plan.--A State
required to submit a State plan under this part during the
period that begins on the date of enactment of the Personal
Responsibility and Individual Development for Everyone Act and
ends on September 30, 2006, may wait until October 1, 2006, to
submit such plan using the Standard State Plan Form developed
under paragraph (1).''.
(2) Conforming amendment.--Section 402 (42 U.S.C. 602) is
amended by striking subsection (c).
(c) Consultation With State Regarding Plan and Design of Tribal
Programs.--Section 412(b)(1) (42 U.S.C. 612(b)(1)) is amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) in subparagraph (F), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) provides an assurance that each State in
which the tribe is located has been consulted regarding
the plan and its design.''.
(d) Performance Measures.--Section 413 (42 U.S.C. 613) is amended
by adding at the end the following:
``(k) Performance Improvement.--The Secretary, in consultation with
the States, shall develop uniform performance measures designed to
assess the degree of effectiveness, and the degree of improvement, of
State programs funded under this part in accomplishing the purposes of
this part.''.
(e) Annual Ranking of States.--Section 413(d)(1) (42 U.S.C.
613(d)(1)) is amended to read as follows:
``(1) Annual ranking of states.--
``(A) In general.--The Secretary shall rank
annually the States to which grants are paid under
section 403 in the order of their success in--
``(i) placing recipients of assistance
under the State program funded under this part
into unsubsidized jobs;
``(ii) the success of the recipients in
retaining employment;
``(iii) the ability of the recipients to
increase their wages;
``(iv) the degree to which recipients have
workplace attachment and advancement;
``(v) reducing the overall welfare
caseload; and
``(vi) when a practicable method for
calculating this information becomes available,
diverting individuals from formally applying to
the State program and receiving assistance.
``(B) Consideration of other factors.--In ranking
States under this paragraph, the Secretary shall take
into account the average number, and the average
proportion, of minor children living at home in
families in the State that have incomes below the
poverty line and the amount of funding provided each
State under this part for such families.''.
SEC. 102. FAMILY ASSISTANCE GRANTS.
(a) Extension of Authority.--Section 403(a)(1) (42 U.S.C.
603(a)(1)) is amended--
(1) in subparagraph (A)--
(A) by striking ``1996, 1997, 1998, 1999, 2000,
2001, 2002, and 2003'' and inserting ``2006 through
2010''; and
(B) by inserting ``payable to the State for the
fiscal year'' before the period; and
(2) in subparagraph (C), by striking ``for fiscal year
2003'' and all that follows through the period, and inserting
``for each of fiscal years 2006 through 2010, $16,566,542,000
for grants under this paragraph.''.
(b) Matching Grants for the Territories.--Section 1108(b)(2) (42
U.S.C. 1308(b)(2)) is amended by striking ``1997 through 2003'' and
inserting ``2006 through 2010''.
SEC. 103. PROMOTION OF FAMILY FORMATION AND HEALTHY MARRIAGE.
(a) State Plans.--Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)), as
amended by section 101(a), is amended by adding at the end the
following:
``(viii) Encourage equitable treatment of
healthy 2-parent married families under the
program referred to in clause (i).''.
(b) Healthy Marriage Promotion Grants; Repeal of Bonus for
Reduction of Illegitimacy Ratio.--Section 403(a)(2) (42 U.S.C.
603(a)(2)) is amended to read as follows:
``(2) Healthy marriage promotion grants.--
``(A) Authority.--
``(i) In general.--The Secretary shall
award competitive grants to States and Indian
tribes and tribal organizations for not more
than 50 percent of the cost of developing and
implementing innovative programs to promote and
support healthy 2-parent married families.
``(ii) Use of other tanf funds.--A State or
Indian tribe or tribal organization with an
approved tribal family assistance plan may use
funds provided under other grants made under
this part for all or part of the expenditures
incurred for the remainder of the costs
described in clause (i). In the case of a
State, any such funds expended shall not be
considered qualified State expenditures for
purposes of section 409(a)(7).
``(B) Healthy marriage promotion activities.--Funds
provided under subparagraph (A) and corresponding State
matching funds shall be used to support any of the
following programs or activities:
``(i) Public advertising campaigns on the
value of marriage and the skills needed to
increase marital stability and health.
``(ii) Education in high schools on the
importance of healthy marriages and the
characteristics of other healthy relationships
experienced throughout life, including
education on the importance of grounding all
relationships in mutual respect and how earlier
healthy relationships are the building blocks
for later healthy marital relationships.
``(iii) Marriage education, marriage
skills, and relationship skills programs, that
may include parenting skills, financial
management, conflict resolution, and job and
career advancement, for non-married pregnant
women, non-married expectant fathers, and non-
married recent parents.
``(iv) Pre-marital education and marriage
skills training for engaged couples and for
couples or individuals interested in marriage.
``(v) Marriage enhancement and marriage
skills training programs for married couples.
``(vi) Divorce reduction programs that
teach relationship skills.
``(vii) Marriage mentoring programs which
use married couples as role models and mentors.
``(viii) Programs to reduce the
disincentives to marriage in means-tested aid
programs, if offered in conjunction with any
activity described in this subparagraph.
``(C) Voluntary participation.--
``(i) In general.--Participation in
programs or activities described in any of
clauses (iii) through (vii) of subparagraph (B)
shall be voluntary.
``(ii) Assurance of informed consent and
option to disenroll.--Each State or Indian
tribe or tribal organization that carries out
programs or activities described in any of
clauses (iii) through (vii) of subparagraph (B)
shall provide the Secretary with an assurance
that each recipient of assistance under the
State program funded under this part who elects
to participate in such programs or activities
shall be informed, prior to making such
election--
``(I) that such participation is
voluntary;
``(II) that the recipient may elect
at any time to disenroll from such
programs or activities by notifying the
State or Indian tribe or tribal
organization that the recipient no
longer wants to participate in such
programs or activities;
``(III) of the process, if any, by
which a recipient who chooses to
withdraw from, or fails to participate
in, such programs or activities may be
required to follow to become engaged in
other programs or activities that are
not programs or activities described in
clauses (iii) through (vii) of
subparagraph (B); and
``(IV) that the State may reassign
a recipient at any time, in accordance
with the requirements of section
408(b), to other activities that are
not programs or activities described in
clauses (iii) through (vii) of
subparagraph (B).
``(iii) No sanction for refusal or failure
to participate.--
``(I) In general.--No State or
Indian tribe or tribal organization
shall deny or reduce assistance to a
recipient of assistance under the State
program funded under this part solely
on the basis of the recipient's
withdrawal from, or failure to,
participate in programs or activities
described in clauses (iii) through
(vii) of subparagraph (B).
``(II) Rule of construction.--
Nothing in this subparagraph shall be
construed as precluding a State or
Indian tribe or tribal organization
from requiring a recipient of
assistance under the State program
funded under this part to engage in
programs or activities that are not
programs or activities described in
clauses (iii) through (vii) of
subparagraph (B) or to sanction a
recipient for failure to engage in such
programs or activities or to follow any
such procedures the State may establish
to enroll a recipient in such other
programs or activities.
``(D) General rules governing use of funds.--The
rules of section 404, other than subsection (b) of that
section, shall not apply to a grant made under this
paragraph.
``(E) Requirements for receipt of funds.--A State
or Indian tribe or tribal organization may not be
awarded a grant under this paragraph unless the State
or Indian tribe or tribal organization, as a condition
of receiving funds under such a grant--
``(i) consults with domestic violence
organizations that have demonstrated expertise
working with survivors of domestic violence in
developing policies, procedures, programs and
training necessary to appropriately address
domestic violence in families served by
programs and activities funded under such
grant;
``(ii) describes in the application for a
grant under this paragraph--
``(I) how the programs or
activities proposed to be conducted
will appropriately address issues of
domestic violence; and
``(II) what the State or Indian
tribe or tribal organization, will do,
to the extent relevant, to ensure that
participation in such programs or
activities is voluntary, and to inform
potential participants that their
involvement is voluntary;
``(iii) establishes a written protocol for
providers and administrators of programs and
activities relevant to the grant that--
``(I) provides for helping identify
instances or risks of domestic
violence; and
``(II) specifies the procedures for
making service referrals and providing
protections and appropriate assistance
for identified individuals and
families;
``(iv) establishes performance goals for
funded programs and activities that clarify the
primary objective of such funded programs and
activities is to increase the incidence and
quality of healthy marriages and not solely to
expand the number or percentage of married
couples; and
``(v) submits the annual reports required
under subparagraph (F).
``(F) Annual reports to the secretary.--Each State
and Indian tribe or tribal organization awarded a grant
under this paragraph shall submit to the Secretary an
annual report on the programs and activities funded
under the grant that includes the following:
``(i) A description of the written
protocols developed in accordance with the
requirements of subparagraph (E)(iii) for each
program or activity funded under the grant and
how such protocols are used, including specific
policies and procedures for addressing domestic
violence issues within each program or activity
funded under the grant and how confidentiality
issues are addressed.
``(ii) The name of each individual,
organization, or entity that was consulted in
the development of such protocols.
``(iii) A description of each individual,
organization, or entity (if any) that provided
training on domestic violence for the State,
Indian tribe or tribal organization, or for any
subgrantees.
``(iv) A description of any implementation
issues identified with respect to domestic
violence and how such issues were addressed.
``(G) Biannual reports to congress.--Not later than
24 months after the date of enactment of the Personal
Responsibility and Individual Development for Everyone
Act, and every 6 months thereafter, the Secretary shall
submit to Congress a report regarding the programs and
activities funded with grants awarded under this
paragraph. Each report submitted in accordance with
this subparagraph shall include the following:
``(i) The name of each program or activity
funded with such grants and the name of each
grantee and subgrantee.
``(ii) The total number of individuals
served under programs or activities funded
under the grant.
``(iii) The total number of individuals
who--
``(I) completed a program or
activity funded under the grant,
including the number of such
individuals who received assistance
under the State program funded under
this part or with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)) while participating in
such program or activity; and
``(II) did not complete such a
program or activity, including due to
ceasing to receive assistance under the
State program funded under this part or
with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)) or
for other reasons.
``(iv) A description of the types of
services offered under such programs or
activities.
``(v) The criteria for selection of
programs or activities to be funded under such
grant with respect to the award of grants by
the Secretary and the awarding of funds to
subgrantees.
``(vi) A description of the activities
carried out by the Secretary to support
grantees and subgrantees in responding to
domestic violence issues.
``(v) A summary of the written domestic
violence protocols used by grantees and
subgrantees.
``(vii) A summary of who the grantees and
subgrantees consulted with in developing such
protocols.
``(viii) A summary of the training provided
to grantees and subgrantees on domestic
violence.
``(ix) A list of the organizations,
entities, and activities funded under sections
103(c) and 114(e) of the Personal
Responsibility and Individual Development for
Everyone Act.
``(H) Domestic violence defined.--In this
paragraph, the term `domestic violence' has the meaning
given that term in section 402(a)(7)(B).
``(I) Appropriation.--
``(i) In general.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each
of fiscal years 2005 through 2010, $100,000,000
for grants under this paragraph.
``(ii) Extended availability of funds.--
``(I) In general.--Funds
appropriated under clause (i) for each
of fiscal years 2006 through 2010 shall
remain available to the Secretary until
expended.
``(II) Authority for grant
recipients.--A State or Indian tribe or
tribal organization may use funds made
available under a grant awarded under
this paragraph without fiscal year
limitation pursuant to the terms of the
grant.''.
(c) Best Practices for Addressing Domestic Violence.--Section 413
(42 U.S.C. 613) as amended by section 101(d), is amended by adding at
the end the following:
``(l) Best Practices for Addressing Domestic Violence.--
``(1) In general.--The Secretary shall, by grant, contract,
or interagency agreement, develop and implement programs that
are designed to address domestic violence as a barrier to
healthy relationships, marriage, and economic security.
Programs developed and implemented under this subsection shall
include--
``(A) training for caseworkers administering the
State program funded under this part;
``(B) technical assistance;
``(C) the provision of voluntary services for
victims of such violence; and
``(D) activities related to the prevention of
domestic violence.
``(2) Domestic violence defined.--In this subsection, the
term `domestic violence' has the meaning given that term in
section 402(a)(7)(B).
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection, $10,000,000
for each of fiscal years 2006 through 2010. Amounts
appropriated to carry out this subsection shall be in addition
to and not in lieu of amounts otherwise appropriated to carry
out programs to address domestic violence.''.
(d) Counting of Spending on Non-Eligible Families To Prevent and
Reduce Incidence of Out-of-Wedlock Births, Encourage Formation and
Maintenance of Healthy 2-Parent Married Families, or Encourage
Responsible Fatherhood.--Section 409(a)(7)(B)(i) (42 U.S.C.
609(a)(7)(B)(i)) is amended by adding at the end the following:
``(V) Counting of spending on non-
eligible families to prevent and reduce
incidence of out-of-wedlock births,
encourage formation and maintenance of
healthy 2-parent married families, or
encourage responsible fatherhood.--
Subject to subclauses (II) and (III),
the term `qualified State expenditures'
includes the total expenditures by the
State during the fiscal year under all
State programs for a purpose described
in paragraph (3) or (4) of section
401(a).''.
(e) Purposes.--Section 401(a)(4) (42 U.S.C. 601(a)(4)) is amended
by striking ``two-parent families'' and inserting ``healthy 2-parent
married families, and encourage responsible fatherhood''.
SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN CERTAIN
STATES.
Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is amended--
(1) in clause (i), by striking ``2002 and 2003'' and
inserting ``2006 through 2009'';
(2) in clause (ii), by striking ``March 31, 2005'' and
inserting ``fiscal year 2009''; and
(3) in clause (iii), by striking ``2002 and 2003'' and
inserting ``2006 through 2009''.
SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.
(a) In General.--Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended
to read as follows:
``(4) Bonus to reward employment achievement.--
``(A) In general.--The Secretary shall make a grant
pursuant to this paragraph to each State for each bonus
year for which the State is an employment achievement
State.
``(B) Amount of grant.--
``(i) In general.--Subject to clause (ii),
the Secretary shall determine the amount of the
grant payable under this paragraph to an
employment achievement State for a bonus year,
which shall be based on the performance of the
State as determined under subparagraph (D)(i)
for the fiscal year that immediately precedes
the bonus year.
``(ii) Limitation.--The amount payable to a
State under this paragraph for a bonus year
shall not exceed 5 percent of the State family
assistance grant.
``(C) Formula for measuring state performance.--
``(i) In general.--Subject to clause (ii),
not later than October 1, 2006, the Secretary,
in consultation with the States, shall develop
a formula for measuring State performance in
operating the State program funded under this
part so as to achieve the goal of workplace
attachment and advancement for families
receiving assistance under the program (and for
families diverted from receiving such
assistance if, and only to the extent that, the
Secretary determines that it is possible to
measure State performance with respect to such
families), as measured on an absolute basis and
on the basis of improvement in State
performance.
``(ii) Special rule for bonus years 2006
and 2007.--For the purposes of awarding a bonus
under this paragraph for bonus year 2006 or
2007, the Secretary may measure the performance
of a State in fiscal year 2005 or 2006 (as the
case may be) using the job entry rate, job
retention rate, and earnings gain rate
components of the formula developed under
section 403(a)(4)(C) as in effect immediately
before the effective date of this paragraph.
``(D) Determination of state performance.--For each
bonus year, the Secretary shall--
``(i) use the formula developed under
subparagraph (C) to determine the performance
of each eligible State for the fiscal year that
precedes the bonus year; and
``(ii) prescribe performance standards in
such a manner so as to ensure that--
``(I) the average annual total
amount of grants to be made under this
paragraph for--
``(aa) each of bonus years
2006 through 2008 equals
$50,000,000; and
``(bb) each of bonus years
2009 through 2011 equals
$100,000,000; and
``(II) the total amount of grants
to be made under this paragraph for all
bonus years equals $450,000,000.
``(E) Definitions.--In this paragraph:
``(i) Bonus year.--The term `bonus year'
means each of fiscal years 2006 through 2011.
``(ii) Employment achievement state.--The
term `employment achievement State' means, with
respect to a bonus year, an eligible State
whose performance determined pursuant to
subparagraph (D)(i) for the fiscal year
preceding the bonus year equals or exceeds the
performance standards prescribed under
subparagraph (D)(ii) for such preceding fiscal
year.
``(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for the period of
fiscal years 2006 through 2011, $450,000,000 for grants
under this paragraph.
``(G) Grants for indian tribes.--
``(i) Reservation of funds.--Of the amount
appropriated under subparagraph (F), the
Secretary shall reserve an amount equal to 2
percent of such amount for making grants to
Indian tribes.
``(ii) Application.--This paragraph shall
apply with respect to Indian tribes in the same
manner in which this paragraph applies with
respect to States.
``(iii) Consultation.--The Secretary shall
consult with Indian tribes in determining the
criteria under which to make grants to Indian
tribes and tribal organizations under this
paragraph.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date of enactment of this Act.
SEC. 106. CONTINGENCY FUND.
(a) Contingency Funding Available to Needy States.--Section 403(b)
(42 U.S.C. 603(b)) is amended--
(1) by striking paragraphs (1) through (3) and inserting
the following:
``(1) Contingency fund grants.--
``(A) Payments.--Subject to subparagraphs (C) and
(D), and out of funds appropriated under subparagraph
(F), each State shall receive a contingency fund grant
for each eligible month in which the State is a needy
State under paragraph (3).
``(B) Monthly contingency fund grant amount.--For
each eligible month in which a State is a needy State,
the State shall receive a contingency fund grant equal
to the product of--
``(i) the applicable percentage (as defined
under subparagraph (E)(i)) of the applicable
benefit level (as defined in subparagraph
(E)(ii)); and
``(ii) the amount by which the total number
of families that received assistance under the
State program funded under this part in the
most recently concluded 3-month period for
which data are available from the State exceeds
a 5-percent increase in the number of such
families in the corresponding 3-month period in
either of the 2 most recent preceding fiscal
years and that was due, in large measure, to
economic conditions rather than State policy
changes.
``(C) Limitation.--The total amount paid to a
single State under subparagraph (A) during a fiscal
year shall not exceed the amount equal to 10 percent of
the State family assistance grant (as defined under
subparagraph (B) of subsection (a)(1)).
``(D) Payments to indian tribes.--
``(i) In general.--Of the total amount
appropriated pursuant to subparagraph (F),
$25,000,000 of such amount shall be reserved
for making payments to Indian tribes with
approved tribal family assistance plans that
are operating in situations of increased
economic hardship.
``(ii) Determination of criteria for tribal
access.--
``(I) In general.--Subject to
subclause (II), the Secretary, in
consultation with Indian tribes with
approved tribal family assistance
plans, shall determine the criteria for
access by such tribes to the amount
reserved under clause (i).
``(II) Inclusion of certain
factors.--Such criteria shall include
factors related to increases in
unemployment and loss of employers.
``(iii) Application of requirements for
payments to states.--The Secretary, in
consultation with Indian tribes with approved
tribal family assistance plans located
throughout the United States, shall determine
the extent to which requirements of States for
payments from the contingency fund established
under this subsection shall apply to Indian
tribes receiving payments under this
subparagraph.
``(E) Definitions.--In this paragraph:
``(i) Applicable percentage.--The term
`applicable percentage' means the Federal
medical assistance percentage for the State (as
defined in section 1905(b)).
``(ii) Applicable benefit level.--
``(I) In general.--Subject to
subclause (II), the term `applicable
benefit level' means the amount equal
to the maximum cash assistance grant
for a family consisting of 3
individuals under the State program
funded under this part.
``(II) Rule for states with more
than 1 maximum level.--In the case of a
State that has more than 1 maximum cash
assistance grant level for families
consisting of 3 individuals, the basic
assistance cost shall be the amount
equal to the maximum cash assistance
grant level applicable to the largest
number of families consisting of 3
individuals receiving assistance under
the State program funded under this
part.
``(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there is appropriated for the period of
fiscal years 2006 through 2010, such sums as are
necessary for making contingency fund grants under this
subsection in a total amount not to exceed
$2,000,000,000.'';
(2) by redesignating paragraph (4) as paragraph (2); and
(3) in paragraph (2), as so redesignated--
(A) by striking ``(3)(A)'' and inserting ``(1)'';
and
(B) by striking ``2-month period that begins with
any'' and inserting ``fiscal year quarter that includes
a''.
(b) Modification of Definition of Needy State.--Section 403(b), as
amended by subsection (a), (42 U.S.C. 603(b)) is further amended--
(1) by striking paragraphs (5) and (6);
(2) by redesignating paragraphs (7) and (8) as paragraphs
(5) and (6), respectively; and
(3) by inserting after paragraph (2) (as redesignated by
subsection (a)(2)) the following:
``(3) Initial determination of whether a state qualifies as
a needy state.--
``(A) In general.--For purposes of paragraph (1),
subject to paragraph (4), a State will be initially
determined to be a needy State for a month if, as
determined by the Secretary--
``(i) the monthly average of the
unduplicated number of families that received
assistance under the State program funded under
this part in the most recently concluded 3-
month period for which data are available from
the State increased by at least 5 percent over
the number of such families that received such
benefits in the corresponding 3-month period in
either of the 2 most recent preceding fiscal
years;
``(ii) the increase in the number of such
families for the State was due, in large
measure, to economic conditions rather than
State policy changes; and
``(iii) the State satisfies any of the
following criteria:
``(I) The average rate of total
unemployment in the State (seasonally
adjusted) for the period consisting of
the most recent 3 months for which data
are available has increased by the
lesser of 1.5 percentage points or by
50 percent over the corresponding 3-
month period in either of the 2 most
recent preceding fiscal years.
``(II) The average insured
unemployment rate for the most recent
13 weeks for which data are available
has increased by 1 percentage point
over the corresponding 13-week period
in either of the 2 most recent
preceding fiscal years.
``(III) As determined by the
Secretary of Agriculture, the monthly
average number of households (as of the
last day of each month) that
participated in the food stamp program
in the State in the then most recently
concluded 3-month period for which data
are available exceeds by at least 15
percent the monthly average number of
households (as of the last day of each
month) in the State that participated
in the food stamp program in the
corresponding 3-month period in either
of the 2 most recent preceding fiscal
years, but only if the Secretary and
the Secretary of Agriculture concur in
the determination that the State's
increased caseload was due, in large
measure, to economic conditions rather
than changes in Federal or State
policies related to the food stamp
program.
``(B) Duration.--A State that qualifies as a needy
State--
``(i) under subclause (I) or (II) of
subparagraph (A)(iii), shall be considered a
needy State until the State's average rate of
total unemployment or the State's insured
unemployment rate, respectively, falls below
the level attained in the applicable period
that was first used to determine that the State
qualified as a needy State under that
subparagraph (and in the case of the insured
unemployment rate, without regard to any
declines in the rate that are the result of
seasonal variation); and
``(ii) under subclause (III) of
subparagraph (A)(iii), shall be considered a
needy State so long as the State meets the
criteria for being considered a needy State
under that subparagraph.
``(4) Exceptions.--
``(A) Unexpended balances.--
``(i) In general.--Notwithstanding
paragraph (3), a State that has unexpended TANF
balances in an amount that exceeds 30 percent
of the total amount of grants received by the
State under subsection (a) for the most
recently completed fiscal year (other than
welfare-to-work grants made under paragraph (5)
of that subsection prior to fiscal year 2000),
shall not be a needy State under this
subsection.
``(ii) Definition of unexpended tanf
balances.--In clause (i), the term `unexpended
TANF balances' means the lesser of--
``(I) the total amount of grants
made to the State (regardless of the
fiscal year in which such funds were
awarded) under subsection (a) (other
than welfare-to-work grants made under
paragraph (5) of that subsection prior
to fiscal year 2000) but not yet
expended as of the end of the fiscal
year preceding the fiscal year for
which the State would, in the absence
of this subparagraph, be considered a
needy State under this subsection; and
``(II) the total amount of grants
made to the State under subsection (a)
(other than welfare-to-work grants made
under paragraph (5) of that subsection
prior to fiscal year 2000) but not yet
expended as of the end of such
preceding fiscal year, plus the
difference between--
``(aa) the pro rata share
of the current fiscal year
grant to be made under
subsection (a) to the State;
and
``(bb) current year
expenditures of the total
amount of grants made to the
State under subsection (a)
(regardless of the fiscal year
in which such funds were
awarded) (other than such
welfare-to-work grants) through
the end of the most recent
calendar quarter.
``(B) Failure to satisfy maintenance of effort
requirement.--Notwithstanding paragraph (3), a State
that fails to satisfy the requirement of section
409(a)(7) with respect to a fiscal year shall not be a
needy State under this subsection for that fiscal
year.''.
(c) Clarification of Reporting Requirements.--Paragraph (6) of
section 403(b) (42 U.S.C. 603(b)), as redesignated by subsection
(b)(2), is amended by striking ``on the status of the Fund'' and
inserting ``on the States that qualified for contingency funds and the
amount of funding awarded under this subsection''.
(d) Elimination of Penalty for Failure To Maintain 100 Percent
Maintenance of Effort.--
(1) In general.--Section 409(a) (42 U.S.C. 609(a)) is
amended--
(A) by striking paragraph (10); and
(B) by redesignating paragraphs (11) through (14)
as paragraphs (10) through (13), respectively.
(2) Conforming amendments.--Section 409 (42 U.S.C. 609) is
amended--
(A) in subsection (a)(7)(B)(i)(III), by striking
``(12)'' and inserting ``(11)'';
(B) in subsection (b)(2), by striking ``(10), (12),
or (13)'' and inserting ``(11), or (12)''; and
(C) in subsection (c)(4), by striking ``(10), (12),
or (13)'' and inserting ``(11), or (12)''.
SEC. 107. USE OF FUNDS.
(a) Repeal of Treatment of Interstate Immigrants.--Section 404 (42
U.S.C. 604) is amended by striking subsection (c) and inserting the
following:
``(c) [Reserved].''.
(b) Social Services Block Grant.--
(1) Restoration of Authority To Transfer Up to 10 Percent
of TANF Funds.--Section 404(d)(2) (42 U.S.C. 604(d)(2)) is
amended to read as follows:
``(2) Limitation on amount transferable to title xx
programs.--A State may use not more than 10 percent of the
amount of any grant made to the State under section 403(a) for
a fiscal year to carry out State programs pursuant to title
XX.''.
(2) Increase in social services block grant funds.--Section
2003(c)(11) (42 U.S.C. 1397b(c)(11)) is amended by inserting
``, except that with respect to each of fiscal years 2006
through 2010, the amount shall be $1,900,000,000'' after
``thereafter''.
(c) Clarification of Authority of States To Use TANF Funds Carried
Over From Prior Years To Provide TANF Benefits and Services.--Section
404(e) (42 U.S.C. 604(e)) is amended to read as follows:
``(e) Authority To Carryover or Reserve Certain Amounts for
Benefits or Services or for Future Contingencies.--
``(1) Carryover.--A State or Indian tribe may use a grant
made to the State or Indian tribe under this part for any
fiscal year to provide, without fiscal year limitation, any
benefit or service that may be provided under the State or
tribal program funded under this part.
``(2) Contingency reserve.--A State or Indian tribe may
designate any portion of a grant made to the State or Indian
tribe under this part as a contingency reserve for future
needs, and may use any amount so designated to provide, without
fiscal year limitation, any benefit or service that may be
provided under the State or tribal program funded under this
part. If a State or Indian tribe so designates a portion of
such a grant, the State or Indian tribe shall include in its
report under section 411(a) the amount so designated.''.
(d) State Option To Establish Undergraduate Postsecondary or
Vocational Educational Program.--
(1) In general.--Section 404 (42 U.S.C. 604) is amended by
adding at the end the following:
``(l) Authority To Establish Undergraduate Postsecondary or
Vocational Educational Program.--
``(1) In general.--Subject to the succeeding paragraphs of
this subsection, a State to which a grant is made under section
403 may use the grant or State funds that are qualified State
expenditures (as defined in section 409(a)(7)(B)(i)) to
establish a program under which an eligible participant (as
defined in paragraph (3)) may be provided support services
described in paragraph (5) and, subject to paragraph (6), may
have hours of participation in such program counted as being
engaged in work for purposes of determining monthly
participation rates under section 407(b)(1)(B)(i).
``(2) State plan requirement.--In order to establish a
program under this subsection, a State shall describe (in an
addendum to the State plan submitted under section 402) the
applicable eligibility criteria that is designed to limit
participation in the program to only those individuals--
``(A) whose past earnings indicate that the
individuals cannot qualify for employment that pays
enough to allow them to obtain self-sufficiency (as
determined by the State); and
``(B) for whom enrollment in the program will
prepare the individuals for higher-paying occupations
that are in demand in the State.
``(3) Definition of eligible participant.--In this
subsection, the term `eligible participant' means an
individual--
``(A) who--
``(i) receives assistance under the State
program funded under this part;
``(ii) is a former recipient of assistance
under the State program funded under this part;
or
``(iii) is a needy parent in a family with
children eligible for benefits or services
funded under a grant made under section 403 or
with State funds that are qualified State
expenditures (as defined in section
409(a)(7)(B)(i)); and
``(B) who--
``(i) is enrolled in a postsecondary 2- or
4-year degree program or a vocational
educational training program; and
``(ii) during the period the individual
participates in the program established under
this subsection, maintains satisfactory
academic progress, as defined by the
institution operating the postsecondary 2- or
4-year degree program or vocational educational
training program in which the individual is
enrolled.
``(4) Required time periods for completion of degree or
vocational educational training program.--
``(A) In general.--Subject to subparagraph (B), an
eligible participant participating in a program
established under this subsection shall be required to
complete the requirements of a postsecondary 2- or 4-
year degree program or a vocational educational
training program within the normal timeframe (as
determined by the institution operating the 2- or 4-
year degree program or a vocational educational
training program) for full-time students seeking the
particular degree or completing the vocational
educational training program.
``(B) Exception.--
``(i) In general.--For good cause, the
State may allow an eligible participant to
complete their degree requirements or
vocational educational training program within
a period not to exceed 1\1/2\ times the normal
timeframe established under subparagraph (A)
(unless further modification is required by the
Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.), or section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794)) and
may modify the requirements applicable to an
individual participating in the program. For
purposes of the preceding sentence, good cause
includes, with respect to an eligible
participant, the presence of 1 or more
significant barriers, as determined by the
State, to normal participation by the
participant, such as the need to care for a
family member with special needs.
``(ii) Inclusion of barriers in state plan
addendum.--A State shall identify and define in
the addendum to the State plan under paragraph
(2) the barriers that make an eligible
participant eligible for the good cause
exception permitted under clause (i).
``(5) Support services described.--For purposes of
paragraph (1), the support services described in this paragraph
include any or all of the following during the period the
eligible participant is participating in the program
established under this subsection:
``(A) Child care.
``(B) Transportation services.
``(C) Payment for books and supplies.
``(D) Other services provided under policies
determined by the State to ensure coordination and lack
of duplication with other programs available to provide
support services.
``(6) Rules for inclusion in monthly work participation
rates.--
``(A) Families counted as participating if they
meet the requirements of subparagraph (b) or (c).--
Subject to subparagraph (D), for each eligible
participant who receives assistance under the State
program funded under this part, a State may elect, for
purposes of determining monthly participation rates
under section 407(b)(1)(B)(i), to include such
participant in the determination of such rates in
accordance with subparagraph (B) or (C).
``(B) Full or partial credit for hours of
participation in educational or related activities.--
``(i) In general.--Subject to clause (iv),
an eligible participant who participates in
educational or related activities (as
determined by the State in accordance with
clause (ii)) under a program established under
this subsection shall be given credit for the
number of hours of such participation to the
extent that an adult recipient or minor child
head of household would be given credit under
section 407(c) for being engaged in the same
number of hours of work activities described in
paragraph (1), (2), (3), (4), (5), (6), (7),
(8), or (12) of section 407(d).
``(ii) Related activities.--For purposes of
clause (i), related activities shall include--
``(I) work activities described in
paragraph (1), (2), (3), (4), (5), (6),
(7), (8), or (12) of section 407(d);
``(II) work study, practicums,
internships, clinical placements,
laboratory or field work, or such other
activities that will enhance the
eligible participant's employability in
the participant's field of study, as
determined by the State; or
``(III) subject to clause (iii),
study time.
``(iii) Limitation on inclusion of study
time.--For purposes of determining hours per
week of participation by an eligible
participant under a program established under
this subsection, a State may not count study
time of less than 1 hour for every hour of
class time or more than 2 hours for every hour
of class time.
``(iv) Total number of hours limited to
being counted as 1 family.--In no event may
hours per week of participation by an eligible
participant under a program established under
this subsection result in the participant's
family being counted as more than 1 family for
purposes of determining monthly participation
rates under section 407(b)(1)(B)(i).
``(C) Full credit for being engaged in direct work
activities for certain hours per week.--
``(i) In general.--A family that includes
an eligible participant who, in addition to
complying with the full-time educational
participation requirements of the postsecondary
2- or 4-year degree program or vocational
educational training program that the
participant is enrolled in, participates in an
activity described in subclause (I) or (II) of
subparagraph (B)(ii) for not less than the
number of hours required per week under clause
(ii) shall be counted as 1 family.
``(ii) Required hours per week.--For
purposes of clause (i), subject to clause
(iii), the number of hours per week are--
``(I) 6 hours per week during the
first 12-month period that an eligible
participant participates in a program
established under this subsection;
``(II) 8 hours per week during the
second 12-month period of such
participation;
``(III) 10 hours per week during
the third 12-month period of such
participation; and
``(IV) 12 hours per week during the
fourth or any other succeeding 12-
month period of such participation.
``(iii) Modification of requirements for
good cause.--A State may modify the number of
hours per week required under clause (ii) for
good cause. For purposes of the preceding
sentence, good cause includes, with respect to
an eligible participant, the presence of 1 or
more significant barriers, as determined by the
State, to normal participation by the
participant, such as the need to care for a
family member with special needs.
``(D) Cap on number of participants that may be
included in monthly work participation rates.--The
monthly number of families that include an eligible
participant and that are treated as being engaged in
work may not exceed an amount equal to 10 percent of
the families to which assistance is provided under the
State program funded under this part for such month.
``(7) Applicability.--Nothing in this subsection shall be
construed as restricting the authority or discretion of a State
in the use of grants provided under section 403 or the
expenditure of qualified State expenditures (as defined in
section 409(a)(7)(B)(i)) for programs or activities other than
the program established under this subsection.''.
(2) Conforming amendment.--Section 407(d)(8) (42 U.S.C.
607(d)(8)) is amended by inserting ``other than an individual
participating in a program established under section 404(l)''
after ``individual''.
SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE PROGRAMS.
(a) Repeal.--Section 406 (42 U.S.C. 606) is repealed.
(b) Conforming Amendments.--
(1) Section 409 (42 U.S.C. 609), as amended by section
106(d)(2), is amended--
(A) in subsection (a), by striking paragraph (6);
(B) in subsection (b)(2), by striking ``(6),''; and
(C) in subsection (c)(4), by striking ``(6),''.
(2) Section 412 (42 U.S.C. 612) is amended by striking
subsection (f) and redesignating subsections (g) through (i) as
subsections (f) through (h), respectively.
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by
striking ``406,''.
SEC. 109. WORK PARTICIPATION REQUIREMENTS.
(a) Elimination of Separate Work Participation Rate for 2-Parent
Families Beginning With Fiscal Year 2003.--
(1) In general.--Section 407 (42 U.S.C. 607) is amended--
(A) in subsection (a)--
(i) in the heading, by striking
``Participation Rate Requirements'' and all
that follows through ``A State'' and inserting
``Participation Rate Requirements.--A State'';
and
(ii) by striking paragraph (2);
(B) in subsection (b)--
(i) by striking paragraph (2);
(ii) in paragraph (4), by striking
``paragraphs (1)(B) and (2)(B)'' and inserting
``determining monthly participation rates under
paragraph (1)(B)''; and
(iii) in paragraph (5), by striking
``rates'' and inserting ``rate''; and
(C) in subsection (c)--
(i) in paragraph (1)--
(I) by striking ``General rules.--
'' and all that follows through ``For
purposes'' in subparagraph (A) and
inserting ``General rule.--For
purposes''; and
(II) by striking subparagraph (B);
and
(ii) in paragraph (2)(D)--
(I) by striking ``paragraphs
(1)(B)(i) and (2)(B) of subsection
(b)'' and inserting ``subsection
(b)(1)(B)(i)''; and
(II) by striking ``and in 2-parent
families, respectively,''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect as if enacted on October 1, 2002, and any
penalty imposed under section 409(a)(3) of the Social Security
Act (42 U.S.C. 609(a)(3)) against a State for failure to comply
with the minimum participation rate applicable to 2-parent
families under 407(a)(2) of such Act (42 U.S.C. 607(a)(2)), as
in effect on the day before such date, with respect to fiscal
year 2002, 2003, or 2004 is rescinded.
(b) Minimum Participation Rates.--Section 407(a) (42 U.S.C.
607(a)), as amended by subsection (a)(1)(A), is amended to read as
follows:
``(a) Participation Rate Requirements.--
``(1) In general.--A State to which a grant is made under
section 403 for a fiscal year shall achieve a minimum
participation rate with respect to all families receiving
assistance under the State program funded under this part that
is equal to not less than--
``(A) 50 percent for fiscal year 2006;
``(B) 55 percent for fiscal year 2007;
``(C) 60 percent for fiscal year 2008;
``(D) 65 percent for fiscal year 2009; and
``(E) 70 percent for fiscal year 2010 and each
succeeding fiscal year.''.
(c) Limitation on Reduction of Participation Rate Through
Application of Credits.--Section 407(a) (42 U.S.C. 607(a)), as amended
by subsection (b), is amended by adding at the end the following:
``(2) Limitation on reduction of participation rate through
application of credits.--Notwithstanding any other provision of
this part, the net effect of any percentage reduction in the
minimum participation rate otherwise required under this
section with respect to families receiving assistance under the
State program funded under this part as a result of the
application of any employment credit, caseload reduction
credit, or other credit against such rate for a fiscal year,
shall not exceed--
``(A) 40 percentage points, in the case of fiscal
year 2006;
``(B) 35 percentage points, in the case of fiscal
year 2007;
``(C) 30 percentage points, in the case of fiscal
year 2008;
``(D) 25 percentage points, in the case of fiscal
year 2009; or
``(E) 20 percentage points, in the case of fiscal
year 2010 or any fiscal year thereafter.''.
(d) Replacement of Caseload Reduction Credit With Employment
Credit.--
(1) Employment credit to reward states in which families
leave welfare for work; additional credit for families with
higher earnings.--
(A) In general.--Section 407(b) (42 U.S.C. 607(b)),
as amended by subsection (a)(1)(B)(i), is amended by
inserting after paragraph (1) the following:
``(2) Employment credit.--
``(A) In general.--Subject to subsection (a)(2),
beginning with fiscal year 2008, the Secretary shall,
by regulation, reduce the minimum participation rate
otherwise applicable to a State under this subsection
for a fiscal year by the number of percentage points in
the employment credit for the State for the fiscal
year, as determined by the Secretary--
``(i) using information in the National
Directory of New Hires;
``(ii) with respect to a recipient of
assistance or former recipient of assistance
under the State program funded under this part
who is placed with an employer whose hiring
information is not reported to the National
Directory of New Hires, using quarterly wage
information submitted by the State to the
Secretary not later than such date as the
Secretary shall prescribe in regulations; or
``(iii) with respect to families described
in subclause (II) or (III) of subparagraph
(B)(ii), using such other data (including data
relating to qualified State expenditures (as
defined in section 409(a)(7)(B)(i)) or any
other State programs that are used to provide
nonrecurring short-term benefits or substantial
child care or transportation assistance to such
families) as the Secretary may require in order
to determine the employment credit for a State
under this paragraph.
``(B) Calculation of credit.--
``(i) In general.--The employment credit
for a State for a fiscal year is an amount
equal to the sum of the amounts determined
under clause (ii), divided by the amount
determined under clause (iii).
``(ii) Numerator.--For purposes of clause
(i), the amounts determined under this clause
are the following:
``(I) Twice the quarterly average
unduplicated number of families that
include an adult or minor child head of
household recipient of assistance under
the State program funded under this
part, that ceased to receive such
assistance for at least 2 consecutive
months following case closure for the
family during the applicable period (as
defined in clause (v)), that did not
receive assistance under a separate
State-funded program during such 2-
month period, and that were employed
during the calendar quarter immediately
succeeding the quarter in which the
assistance under the State program
funded under this part ceased.
``(II) At the option of the State,
twice the quarterly average number of
families that received a nonrecurring
short-term benefit under the State
program funded under this part during
the applicable period (as defined in
clause (v)), that were employed during
the calendar quarter immediately
succeeding the quarter in which the
nonrecurring short-term benefit was so
received, and that earned at least
$1,000 during such succeeding calendar
quarter.
``(III) At the option of the State,
twice the quarterly average number of
families that include an adult who is
receiving substantial child care
(including child care funded by
transfers under section 404(d) to the
Child Care and Development Block Grant
Act of 1990) or transportation
assistance (as defined by the
Secretary, in consultation with
directors of State programs funded
under this part, which definition shall
specify for each type of assistance a
threshold which is a dollar value or a
length of time over which the
assistance is received and which takes
into account large one-time transition
payments) during the applicable period
(as defined in clause (v)) and that
were employed during the calendar
quarter in which the substantial child
care or transportation assistance was
so received and earned at least $1,000
during such calendar quarter.
``(iii) Denominator.--For purposes of
clause (i), the amount determined under this
clause is the amount equal to the sum of the
following:
``(I) The average monthly number of
families that include an adult or minor
child head of household who received
assistance under the State program
funded under this part during the
applicable period (as defined in clause
(v)).
``(II) If the State elected the
option under clause (ii)(II), twice the
quarterly average number of families
that received a nonrecurring short-term
benefit under the State program funded
under this part during the applicable
period (as defined in clause (v)).
``(III) If the State elected the
option under clause (ii)(III), twice
the quarterly average number of
families that includes an adult who is
receiving substantial child care
(including child care funded by
transfers under section 404(d) to the
Child Care and Development Block Grant
Act of 1990) or transportation
assistance during the applicable period
(as defined in clause (v)).
``(iv) Special rule for former recipients
with higher earnings.--In calculating the
employment credit for a State for a fiscal
year, in the case of a family that includes an
adult or a minor child head of household that
is to be included in the amount determined
under clause (ii)(I) and that, with respect to
the quarter in which the family's earnings was
examined during the applicable period, earned
at least 33 percent of the average quarterly
earnings in the State (determined on the basis
of State unemployment data), the family shall
be considered to be 1.5 families.
``(v) Definition of applicable period.--For
purposes of this paragraph, the term
`applicable period' means, with respect to a
fiscal year, the most recent 4 quarters for
which data are available to the Secretary
providing information on the work status of--
``(I) individuals in the quarter
after the individuals ceased receiving
assistance under the State program
funded under this part;
``(II) at State option, individuals
in the quarter after the individuals
received a short-term, nonrecurring
benefit; and
``(III) at State option,
individuals in the quarter in which the
individuals received substantial child
care or transportation assistance.
``(C) Notification to state.--Not later than August
31 of each fiscal year, the Secretary shall--
``(i) determine, on the basis of the
applicable period, the amount of the employment
credit that will be used in determining the
minimum participation rate for a State under
subsection (a) for the immediately succeeding
fiscal year; and
``(ii) notify each State conducting a State
program funded under this part of the amount of
the employment credit for such program for the
succeeding fiscal year.''.
(B) Authority of secretary to use information in
national directory of new hires.--Section 453(i) (42
U.S.C. 653(i)) is amended by adding at the end the
following:
``(5) Calculation of employment credit for purposes of
determining state work participation rates under tanf.--The
Secretary may use the information in the National Directory of
New Hires for purposes of calculating State employment credits
pursuant to section 407(b)(2).''.
(2) Elimination of caseload reduction credit.--Effective
October 1, 2007, section 407(b) (42 U.S.C. 607(b)) is amended
by striking paragraph (3) and redesignating paragraphs (4) and
(5) as paragraphs (3) and (4), respectively.
(3) State option to phase-in replacement of caseload
reduction credit with employment credit.--A State may elect to
not have the full employment credit under section 407(b)(2) of
the Social Security Act (as amended by paragraph (1)(A)) apply
to the State program funded under part A of title IV of the
Social Security Act until October 1, 2008, and if the State
makes the election, then, in determining the participation rate
of the State for purposes of section 407 of the Social Security
Act for fiscal year 2008, the State shall be credited with \1/
2\ of the reduction in the rate that would otherwise result
from applying section 407(b)(2) of the Social Security Act (as
added by paragraph (1)(A)) to the State for fiscal year 2008
and \1/2\ of the reduction in the rate that would otherwise
result from applying section 407(b)(3) of the Social Security
Act (as in effect with respect to fiscal year 2005) to the
State for fiscal year 2008.
(4) Study and report.--
(A) In general.--The Secretary of Health and Human
Services (in this paragraph referred to as the
``Secretary'') shall conduct a study (in this paragraph
referred to as the ``Senator Blanche L. Lincoln
Employment Credit Study'') to examine the implications
of the design of the employment credit established
under section 407(b)(2) of the Social Security Act (as
amended by paragraph (1)(A)), and potential
improvements to such credit, for the purposes of
encouraging States to--
(i) provide child care and transportation
to working families so that those families do
not need to receive welfare;
(ii) operate diversion programs that are
intended to help families attain employment;
and
(iii) target the placement and advancement
of working families in jobs with higher
earnings.
(B) Requirements.--The Senator Blanche L. Lincoln
Employment Credit Study required under this paragraph
shall include an analysis of the implications of--
(i) crediting States (either through an
increase in the work participation rate for the
State or in the employment credit) with
families who are employed and not receiving
assistance under the temporary assistance for
needy families program (in this paragraph
referred to as ``TANF'') but are receiving work
supports funded under TANF or with qualified
State expenditures (as defined in section
409(a)(7)(B)(i) of such Act), such as child
care or transportation;
(ii) crediting States (either through an
increase in the work participation rate for the
State or in the employment credit) with
families who have been diverted from receiving
assistance under TANF and have an employed
adult;
(iii) modifying the earnings thresholds for
determining whether a family has an employed
member and whether the family qualifies for the
good jobs bonus provided under section
407(b)(2)(B)(iv) of such Act;
(iv) modifying the data collection
requirements and administrative procedures used
to implement the employment credit;
(v) modifying other specifications for
calculating the credit, such as the
mathematical form of the credit;
(vi) using the data collected and analyzed
for administering the employment credit for
providing additional information to Congress,
States, and other interested parties for
evaluating the performance of State TANF
programs; and
(vii) modifying the cap on the employment
credit, in terms of both maintaining a
meaningful work participation requirement for
families receiving assistance under TANF and
providing an incentive for States to place
recipients in employment and in higher-paying
jobs.
(C) Consultation; access to national directory of
new hires.--In conducting the Senator Blanche L.
Lincoln Employment Credit Study, the Secretary--
(i) shall consult with the States; and
(ii) may use the information in the
National Directory of New Hires established
under section 453(i) of the Social Security Act
(42 U.S.C. 653(i)).
(D) Report.--Not later than September 30, 2009, the
Secretary of Health and Human Services shall submit a
report to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives on the Senator Blanche L. Lincoln
Employment Credit Study.
(e) State Options for Participation Requirement Exemptions.--
Section 407(b)(5) (42 U.S.C. 607(b)(5)), as amended by subsection
(a)(1)(B)(iii), is amended to read as follows:
``(5) State options for participation requirement
exemptions.--At the option of a State, a State may, on a case-
by-case basis--
``(A) not include a family in the determination of
the monthly participation rate for the State in the
first month for which the family receives assistance
from the State program funded under this part on the
basis of the most recent application for such
assistance; or
``(B) not require a family in which the youngest
child has not attained 12 months of age to engage in
work, and may disregard that family in determining the
minimum participation rate under subsection (a) for the
State for not more than 12 months.''.
(f) Determination of Countable Hours Engaged in Work.--Section
407(c) (42 U.S.C. 607(c)) is amended to read as follows:
``(c) Determination of Countable Hours Engaged in Work.--
``(1) Single parent or relative whose youngest child has
attained age 6.--
``(A) Minimum average number of hours per week.--
Subject to the succeeding paragraphs of this
subsection, a family in which an adult recipient or
minor child head of household in the family is
participating in work activities described in
subsection (d) shall be treated as engaged in work for
purposes of determining monthly participation rates
under subsection (b)(1)(B)(i) as follows:
``(i) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 20, but
less than 24, hours per week in a month, as
0.675 of a family.
``(ii) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 24, but
less than 30, hours per week in a month, as
0.75 of a family.
``(iii) In the case of a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 30, but
less than 34, hours per week in a month, as
0.875 of a family.
``(iv) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 34, but
less than 35, hours per week in a month, as 1
family.
``(v) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 35, but
less than 38, hours per week in a month, as
1.05 families.
``(vi) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 38 hours
per week in a month, as 1.08 families.
``(B) Direct work activities required for an
average of 24 hours per week.--Except as provided in
subparagraph (C)(i), a State may not count any hours of
participation in work activities specified in paragraph
(9), (10), or (11) of subsection (d) of any adult
recipient or minor child head of household in a family
before the total number of hours of participation by
any adult recipient or minor child head of household in
the family in work activities described in paragraph
(1), (2), (3), (4), (5), (6), (7), (8), or (12) of
subsection (d) for the family for the month averages at
least 24 hours per week.
``(C) State flexibility to count participation in
certain activities.--
``(i) Qualified activities for 3-months in
any 24-month period.--
``(I) 24-hours per week required.--
Subject to subclauses (III) and (IV),
for purposes of determining hours under
subparagraph (A), a State may count the
total number of hours any adult
recipient or minor child head of
household in a family engages in
qualified activities described in
subclause (II) as a work activity
described in subsection (d), without
regard to whether the recipient has
satisfied the requirement of
subparagraph (B), but only if--
``(aa) the total number of
hours of participation in such
qualified activities and in any
work activities described in
paragraph (1), (2), (3), (4),
(5), (6), (7), (8), or (12) of
subsection (d) for the family
for the month average at least
24 hours per week (except that
if such hours average at least
20, but less than 24, hours per
week, the State may count that
family in accordance with
subparagraph (A)(i)); and
``(bb) engaging in such
qualified activities is a
requirement of the family self-
sufficiency plan.
``(II) Qualified activities
described.--For purposes of subclause
(I), qualified activities described in
this subclause are any of the
following:
``(aa) Postsecondary
education.
``(bb) Adult literacy
programs or activities,
including participation in a
program designed to increase
proficiency in the English
language.
``(cc) Substance abuse
counseling or treatment
(including drug or alcohol
abuse counseling or treatment).
``(dd) Programs or
activities designed to remove
barriers to work, as defined by
the State.
``(ee) Work activities
authorized under any waiver for
any State that was continued
under section 415 before the
date of enactment of the
Personal Responsibility and
Individual Development for
Everyone Act (without regard to
whether the waiver expired
prior to such date of
enactment).
``(ff) Financial literacy
training that is not otherwise
countable under items (aa)
through (ee), except that the
State may not count more than
an average of 5 hours per week
of such training.
``(gg) Programs or
activities design to develop
parenting skills.
``(III) Limitation.--Except as
provided in clause (ii), in any period
of 24 consecutive months, subclause (I)
shall not apply to a family for more
than 3 months (no more than 1 month of
which may be attributable to activities
described in subclause (II)(ff)).
``(IV) Certain activities.--The
Secretary may allow a State to count
the total hours of participation in
qualified activities described in
subclause (II) for an adult recipient
or minor child head of household
without regard to the minimum 24 hour
average per week of participation
requirement under subclause (I) if the
State has demonstrated conclusively
that such activities are part of a
substantial and supervised program
whose effectiveness in moving families
to self-sufficiency is superior to any
alternative activities and the
effectiveness of the program in moving
families to self-sufficiency would be
substantially impaired if participating
individuals participated in additional,
concurrent qualified activities that
enabled the individuals to achieve an
average of at least 24 hours per week
of participation.
``(ii) Additional 3-month period permitted
for certain activities.--
``(I) Self-sufficiency plan
requirement combined with minimum
number of hours.--A State may extend
the 3-month period under clause (i) for
an additional 3 months in the same
period of 24 consecutive months in the
case of an adult recipient or minor
child head of household who is
receiving qualified rehabilitative
services described in subclause (II)
if--
``(aa) the total number of
hours that the adult recipient
or minor child head of
household engages in such
qualified rehabilitative
services and, subject to
subclause (III), a work
activity described in paragraph
(1), (2), (3), (4), (5), (6),
(7), (8), or (12) of subsection
(d) for the month average at
least 24 hours per week; and
``(bb) engaging in such
qualified rehabilitative
services is a requirement of
the family self-sufficiency
plan.
``(II) Qualified rehabilitative
services described.--For purposes of
subclause (I), qualified rehabilitative
services described in this subclause
are any of the following:
``(aa) Adult literacy
programs or activities,
including participation in a
program designed to increase
proficiency in the English
language.
``(bb) In the case of an
adult recipient or minor child
head of household who has been
certified by a qualified
medical, mental health, or
social services professional
(as defined by the State) as
having a physical or mental
disability, substance abuse
problem (including a drug or
alcohol abuse problem), or
other problem that requires a
rehabilitative service,
substance abuse treatment
(including drug or alcohol
abuse treatment), or mental
health treatment, the service
or treatment determined
necessary by a professional.
``(iii) Nonapplication of limitations on
job search and vocational educational
training.--An adult recipient or minor child
head of household who is participating in
qualified activities described in subclause
(II) of clause (i) during a 3-month period
under that clause, or receiving qualified
rehabilitative services described in subclause
(II) of clause (ii) during an additional period
under that clause, may engage in a work
activity described in paragraph (6) or (8) of
subsection (d) for purposes of satisfying the
minimum 24 hour average per week of
participation requirement under clause
(i)(I)(aa) or clause (ii)(I)(aa), respectively,
without regard to any limit that otherwise
applies to the activity (including the 30
percent limitation on participation in
vocational educational training under paragraph
(6)(C)).
``(iv) Hours in excess of an average of 24
work activity hours per week.--If the total
number of hours that any adult recipient or
minor child head of household in a family has
participated in a work activity described in
paragraph (1), (2), (3), (4), (5), (6), (7),
(8), or (12) of subsection (d) averages at
least 24 hours per week in a month, a State,
for purposes of determining hours under
subparagraph (A), may count any additional
hours an adult recipient or minor child head of
household in the family engages in--
``(I) any work activity described
in subsection (d), without regard to
any limit that otherwise applies to the
activity (including the 6-week
limitation on job search and job
readiness assistance under paragraph
(6)(B) and the 30 percent limitation on
participation in vocational educational
training under paragraph (6)(C)); and
``(II) any qualified activity
described in clause (i)(II), as a work
activity described in subsection (d).
``(2) Single parent or relative with a child under age 6.--
``(A) In general.--A family in which an adult
recipient or minor child head of household in the
family is the only parent or caretaker relative in the
family of a child who has not attained 6 years of age
and who is participating in work activities described
in subsection (d) shall be treated as engaged in work
for purposes of determining monthly participation rates
under subsection (b)(1)(B)(i) as follows:
``(i) In the case of such a family in which
the total number of hours in which the adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 20, but
less than 24, hours per week in a month, as
0.675 of a family.
``(ii) In the case of such a family in
which the total number of hours in which the
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
24, but less than 35, hours per week in a
month, as 1 family.
``(iii) In the case of such a family in
which the total number of hours in which the
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
35, but less than 38, hours per week in a
month, as 1.05 families.
``(iv) In the case of such a family in
which the total number of hours in which the
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
38 hours per week in a month, as 1.08 families.
``(B) Application of rules regarding direct work
activities and state flexibility to count participation
in certain activities.--Subparagraphs (B) and (C) of
paragraph (1) apply to a family described in
subparagraph (A) in the same manner as such
subparagraphs apply to a family described in paragraph
(1)(A).
``(3) 2-parent families.--
``(A) In general.--Subject to paragraph (6)(A), a
2-parent family in which an adult recipient or minor
child head of household in the family is participating
in work activities described in subsection (d) shall be
treated as engaged in work for purposes of determining
monthly participation rates under subsection
(b)(1)(B)(i) as follows:
``(i) In the case of such a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 26, but
less than 30, hours per week in a month, as
0.675 of a family.
``(ii) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
30, but less than 35, hours per week in a
month, as 0.75 of a family.
``(iii) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
35, but less than 39, hours per week in a
month, as 0.875 of a family.
``(iv) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
39, but less than 40, hours per week in a
month, as 1 family.
``(v) In the case of such a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 40, but
less than 43, hours per week in a month, as
1.05 families.
``(vi) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
43 hours per week in a month, as 1.08 families.
``(B) Application of rules regarding direct work
activities and state flexibility to count participation
in certain activities.--Subparagraphs (B) and (C) of
paragraph (1) apply to a 2-parent family described in
subparagraph (A) in the same manner as such
subparagraphs apply to a family described in paragraph
(1)(A), except that subparagraph (B) of paragraph (1)
shall be applied to such a 2-parent family by
substituting `34' for `24' each place it appears.
``(4) 2-parent families that receive federally funded child
care.--
``(A) In general.--Subject to paragraph (6)(A), if
a 2-parent family receives federally funded child care
assistance, an adult recipient or minor child head of
household in the family participating in work
activities described in subsection (d) shall be treated
as engaged in work for purposes of determining monthly
participation rates under subsection (b)(1)(B)(i) as
follows:
``(i) In the case of such a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 40, but
less than 45, hours per week in a month, as
0.675 of a family.
``(ii) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
45, but less than 51, hours per week in a
month, as 0.75 of a family.
``(iii) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
51, but less than 55, hours per week in a
month, as 0.875 of a family.
``(iv) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
55, but less than 56, hours per week in a
month, as 1 family.
``(v) In the case of such a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 56, but
less than 59, hours per week in a month, as
1.05 families.
``(vi) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
59 hours per week in a month, as 1.08 families.
``(B) Application of rules regarding direct work
activities and state flexibility to count participation
in certain activities.--Subparagraphs (B) and (C) of
paragraph (1) apply to a 2-parent family described in
subparagraph (A) in the same manner as such
subparagraphs apply to a family described in paragraph
(1)(A), except that subparagraph (B) of paragraph (1)
shall be applied to such a 2-parent family by
substituting `50' for `24' each place it appears.
``(5) Calculation of hours per week.--
``(A) In general.--The number of hours per week
that a family is engaged in work is the quotient of--
``(i) the total number of hours per month
that the family is engaged in work; divided by
``(ii) 4.
``(B) Determination of total number of hours per
month.--The total number of hours per month in which a
family is engaged in work is equal to the sum of the
number of hours of participation in work activities
described in subsection (d) for all adults and minor
child head of households in the family for the month.
``(6) Special rules.--
``(A) Family with a disabled parent not treated as
a 2-parent family.--A family that includes a disabled
parent shall not be considered a 2-parent family for
purposes of paragraph (3) or (4).
``(B) Number of weeks for which job search and job
readiness assistance counts as work.--An individual
shall not be considered to be engaged in work for a
month by virtue of participation in an activity
described in subsection (d)(6) of a State program
funded under this part, after the individual has
participated in such an activity for 6 weeks per fiscal
year (or, if the unemployment rate of the State is at
least 50 percent greater than the unemployment rate of
the United States, or the State meets the criteria of
subclause (I), (II), or (III) of section
403(b)(3)(A)(iii) or satisfies the applicable duration
requirement of section 403(b)(3)(B), 12 weeks per
fiscal year).
``(C) Single teen head of household or married teen
who maintains satisfactory school attendance deemed to
count as 1 family.--For purposes of determining hours
under the preceding paragraphs of this subsection, with
respect to a month, a State shall count a recipient who
is married or a head of household and who has not
attained 20 years of age as 1 family if the recipient--
``(i) maintains satisfactory attendance at
a secondary school or the equivalent during the
month; or
``(ii) participates in education directly
related to employment for an average of at
least 20 hours per week during the month.
``(D) Limitation on number of persons who may be
treated as engaged in work by reason of participation
in educational activities.--Except as provided in
paragraph (1)(C)(ii)(I), for purposes of subsection
(b)(1)(B)(i), not more than 30 percent of the number of
individuals in all families in a State who are treated
as engaged in work for a month may consist of
individuals who are--
``(i) determined (without regard to
individuals participating in a program
established under section 404(l)) to be engaged
in work for the month by reason of
participation in vocational educational
training (but only with respect to such
training that is used to meet the requirements
of paragraph (1)(B)); or
``(ii) deemed to be engaged in work for the
month by reason of subparagraph (C) of this
paragraph.
``(E) State option to deem parent caring for a
child or adult dependent for care with a physical or
mental impairment to be meeting all or part of a
family's work participation requirements for a month.--
``(i) In general.--A State may count the
number of hours per week that an adult
recipient or minor child head of household who
is the parent or caretaker relative for a child
or adult dependent for care with a physical or
mental impairment engages in providing
substantial ongoing care for such child or
adult dependent for care if the State
determines that--
``(I) the child or adult dependent
for care has been verified through a
medically acceptable clinical or
diagnostic technique as having a
significant physical or mental
impairment or combination of
impairments that require substantial
ongoing care;
``(II) the adult recipient or minor
child head of household providing such
care is the most appropriate means, as
determined by the State, by which such
care can be provided to the child or
adult dependent for care;
``(III) for each month in which
this subparagraph applies to the adult
recipient or minor child head of
household, the adult recipient or minor
child head of household is in
compliance with the requirements of the
family's self-sufficiency plan; and
``(IV) the recipient is unable to
participate fully in work activities,
after consideration of whether there
are supports accessible and available
to the family for the care of the child
or adult dependent for care.
``(ii) Total number of hours limited to
being counted as 1 family.--In no event may a
family that includes a recipient to which
clause (i) applies be counted as more than 1
family for purposes of determining monthly
participation rates under subsection
(b)(1)(B)(i).
``(iii) State requirements.--In the case of
a recipient to which clause (i) applies, the
State shall--
``(I) conduct regular, periodic
evaluations of the family of the adult
recipient or minor child head of
household; and
``(II) include as part of the
family's self-sufficiency plan, regular
updates on what special needs of the
child or the adult dependent for care,
including substantial ongoing care,
could be accommodated either by
individuals other than the adult
recipient or minor child head of
household outside of the home.
``(iv) Rule of construction.--Nothing in
this subparagraph shall be construed as
prohibiting a State from including in a
recipient's self-sufficiency plan a requirement
to engage in work activities described in
subsection (d).
``(F) Optional modification of work requirements
for recipients residing in areas of indian country or
an alaskan native village with high joblessness.--If a
State has included in the State plan a description of
the State's policies in areas of Indian country or an
Alaskan Native village described in section
408(a)(7)(D), the State may define the activities that
the State will treat as being work activities described
in subsection (d) that a recipient who resides in such
an area and who is participating in such activities in
accordance with a self-sufficiency plan under section
408(b) may engage in for purposes of satisfying work
requirements under the State program and for purposes
of determining monthly participation rates under
subsection (b)(1)(B)(i).''.
(g) Work Activities.--
(1) In general.--Section 407(d) (42 U.S.C. 607(d)) is
amended--
(A) in paragraph (11), by striking ``and'' at the
end:
(B) in paragraph (12), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(13) marriage education, marriage skills training,
conflict resolution counseling in the context of marriage, and
participation in programs that promote marriage.''.
(2) Conforming amendment.--Section 407(c)(1)(B) (42 U.S.C.
607(c)(1)(B)), as amended by subsection (f), is amended by
striking ``or (11)'' and inserting ``(11), or (13)''.
SEC. 110. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY PLAN
REQUIREMENTS; OTHER PROHIBITIONS AND REQUIREMENTS.
(a) Universal Engagement and Family Self-Sufficiency Plan
Requirements.--
(1) Modification of state plan requirements.--
(A) In general.--Section 402(a)(1)(A) (42 U.S.C.
602(a)(1)(A)) is amended by striking clauses (ii) and
(iii) and inserting the following:
``(ii) Require an adult or minor child head
of household receiving assistance under the
program to engage in work or alternative self-
sufficiency activities (as defined by the
State), consistent with section 407(e)(2).
``(iii)(I) Require families receiving
assistance under the program that--
``(I) include an adult or minor
child head of household to engage in
activities in accordance with family
self-sufficiency plans developed
pursuant to section 408(b); and
``(II) at State option, only
consist of a child or children, to
engage in activities in accordance with
such plans that specify the supportive
services the State intends to provide
for such families and provide for
regular interaction with the families
but do not require participation in a
work activity described in section
407(d) (other than paragraph (11) of
such section).''.
(B) Rule of construction.--Nothing in the
amendments made by subparagraph (A) shall be construed
as requiring a family receiving assistance under a
State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) that only
consists of a child or children, or a caretaker for
such a family, to engage in work as a condition of
receiving such assistance.
(2) Establishment of family self-sufficiency plans.--
(A) In general.--Section 408(b) (42 U.S.C. 608(b))
is amended to read as follows:
``(b) Family Self-Sufficiency Plans.--
``(1) In general.--A State to which a grant is made under
section 403 shall--
``(A) make an initial screening and assessment, in
the manner deemed appropriate by the State, of the
skills, prior work experience, education obtained, work
readiness, barriers to work, and employability of each
adult or minor child head of household recipient of
assistance in the family who--
``(i) has attained age 18; or
``(ii) has not completed high school or
obtained a certificate of high school
equivalency and is not attending secondary
school;
``(B) assess, in the manner deemed appropriate by
the State, the work support and other assistance and
family support services for which each family receiving
assistance is eligible; and
``(C) assess, in the manner deemed appropriate by
the State, the well-being of the children in the
family, and, where appropriate, activities or resources
to improve the well-being of the children.
``(2) Contents of plans.--The State shall, in the manner
deemed appropriate by the State establish for each family that
includes an individual described in paragraph (1)(A) (and, if
the State elects, each family that only consists of a child or
children), in consultation as the State deems appropriate with
the individual, a self-sufficiency plan that--
``(A) specifies activities described in the State
plan submitted pursuant to section 402, including work
activities described in paragraph (1), (2), (3), (4),
(5), (6), (7), (8), or (12) of section 407(d), as
appropriate;
``(B) is designed to assist the family in achieving
their maximum degree of self-sufficiency;
``(C) provides for the ongoing participation of the
individual in the activities specified in the plan;
``(D) requires, at a minimum, each such individual
to participate in activities in accordance with the
self-sufficiency plan;
``(E) sets forth the appropriate supportive
services the State intends to provide for the family;
``(F) establishes for the family a plan that
addresses the issue of child well-being and, when
appropriate, adolescent well-being, and that may
include services such as domestic violence counseling,
mental health referrals, and parenting courses; and
``(G) includes a section designed to assist the
family by informing the family, in such manner as
deemed appropriate by the State, of the work support
and other assistance for which the family may be
eligible including (but not limited to)--
``(i) the food stamp program established
under the Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.);
``(ii) the medicaid program funded under
title XIX;
``(iii) the State children's health
insurance program funded under title XXI;
``(iv) Federal or State funded child care,
including child care funded under the Child
Care Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.) and funds made available
under this title or title XX;
``(v) the earned income tax credit under
section 32 of the Internal Revenue Code of
1986;
``(vi) the low-income home energy
assistance program established under the Low-
Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.);
``(vii) the special supplemental nutrition
program for women, infants, and children
established under section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786);
``(viii) programs conducted under the
Workforce Investment Act of 1998 (29 U.S.C.
2801 et seq.); and
``(ix) low-income housing assistance
programs.
``(3) State option to receive work participation rate
credit for an individual whose plan specifies that they have a
continuing need for rehabilitative services in order to engage
in direct work activities.--
``(A) In general.--A State may elect, on a case-by-
case basis, to include direct work activities by an
individual described in subparagraph (B) that are
combined with rehabilitative services in the
determination of monthly participation rates under
section 407(b)(1)(B)(i).
``(B) Individual described.--For purposes of this
paragraph, an individual described in this subparagraph
is an individual who--
``(i) is an adult or minor child head of
household recipient of assistance;
``(ii) was treated as being engaged in work
during each of the 3-month periods applicable
under clauses (i) and (ii) of section
407(c)(1)(C); and
``(iii) the State determines--
``(I) has been verified through a
medically acceptable clinical or
diagnostic technique as having a
disability that impedes the
individual's ability to function in a
work setting; and
``(II) continues to need
rehabilitative services in order to
engage in direct work activities.
``(C) Requirements.--A State shall not include
activities of an individual described in subparagraph
(B) in the determination of monthly participation rates
under section 407(b)(1)(B)(i) unless the following
requirements are met:
``(i) Development and maintenance of
collaborative relationships.--
``(I) In general.--The State agency
responsible for administering the State
program funded under this part has or
is developing collaborative and
referral relationships with other
governmental and private agencies with
expertise in disability determinations,
or the development of appropriate
services plans for individuals with
disabilities, to address the needs of
adult or minor child head of household
recipients of assistance who have a
disability and require such services
plans in order to engage in direct work
activities.
``(II) Inclusion of relationships
with agencies funded under this part.--
The governmental and private agencies
referred to in subclause (I) include
agencies that may be receiving funds
under this part, such as State and
local mental health agencies, substance
abuse treatment providers (including
drug or alcohol abuse treatment
providers), disability service
agencies, and providers of vocational
rehabilitation services.
``(ii) Self-sufficiency plan specifies the
individual's continuing need for services and
coordination process with providers.--The plan
established under paragraph (2) for an
individual described in subparagraph (B)--
``(I) specifies the individual's
continuing need for rehabilitative
services in order to engage in direct
work activities; and
``(II) describes how the State will
coordinate with each provider of such
services.
``(iii) State plan description and
assurances.--The State includes in an addendum
to the State plan submitted under section 402
the following:
``(I) Description of process for
developing and maintaining
collaborative relationships.--A
description of the process the State
shall use to develop and maintain the
collaborative and referral
relationships with other governmental
and private agencies required under
clause (i).
``(II) Assurance of regular contact
with service providers, reevaluation,
and modification of plan.--An assurance
that the State shall--
``(aa) ensure that each
provider of rehabilitative
services for an individual
described in subparagraph (B)
is in regular contact with the
individual and that the
provider will inform the State
if the individual is no longer
participating in the
rehabilitation services;
``(bb) reevaluate the
individual's continuing need
for such services not less than
once each fiscal year quarter;
and
``(cc) make appropriate
modifications to the
individual's self-sufficiency
plan on the basis of such
information and reevaluations.
``(iv) No determination that the State has
failed to comply with the requirement to
develop and maintain collaborative
relationships.--The Secretary has not made a
determination that the State has failed to
comply with the requirement to develop and
maintain the collaborative and referral
relationships with other governmental and
private agencies required under clause (i).
``(D) Credit for hours of participation in direct
work activities and rehabilitation services.--
``(i) In general.--A State may include in
the determination of monthly participation
rates under section 407(b)(1)(B)(i) the sum of
the total number of hours that an individual
described in subparagraph (B) participates for
a month in--
``(I) direct work activities; and
``(II) rehabilitative services (but
only up to the number of hours of such
services that do not exceed the total
number of hours that the individual
participated in direct work activities
for that month).
``(ii) Application of rules for
determination of countable hours of work.--The
sum of hours of participation by such an
individual shall be treated under section
407(c) in the same manner as a family
participating in work activities described in
section 407(d) is treated as engaged in work
under section 407(c).
``(E) Definitions.--In this paragraph:
``(i) Disability.--The term `disability'
means a physical or mental impairment,
including substance abuse and drug or alcohol
abuse, that--
``(I) constitutes or results in a
substantial impediment to employment;
or
``(II) substantially limits 1 or
more major life activities.
``(ii) Direct work activity.--The term
`direct work activity' means an activity
described in paragraph (1), (2), (3), (4), (5),
(6), (7), (8), or (12) of section 407(d).
``(4) Review.--
``(A) Regular review.--A State to which a grant is
made under section 403 shall--
``(i) monitor the participation of each
adult recipient or minor child head of
household in the activities specified in the
self-sufficiency plan, and regularly review the
progress of the family toward self-sufficiency;
and
``(ii) upon such a review, revise the plan
and activities required under the plan as the
State deems appropriate in consultation with
the family.
``(B) Prior to the imposition of a sanction.--Prior
to imposing a sanction against an adult recipient,
minor child head of household, or a family for failure
to comply with a requirement of the self-sufficiency
plan or the State program funded under this part, the
State shall, in the manner determined appropriate by
the State--
``(i) review the self-sufficiency plan; and
``(ii) make a good faith effort (as defined
by the State) to consult with the family.
``(5) State discretion.--Subject to paragraph (3), a State
shall have sole discretion, consistent with section 407, to
define and design activities for families for purposes of this
subsection, to develop methods for monitoring and reviewing
progress pursuant to this subsection, and to make modifications
to the plan as the State deems appropriate to assist the
individual in increasing their degree of self-sufficiency.
``(6) Application to partially sanctioned families.--The
requirements of this subsection shall apply in the case of a
family that includes an adult or minor child head of household
recipient of assistance who is subject to a partial sanction.
``(7) Timing.--The State shall initiate screening and
assessment and the establishment of a family self-sufficiency
plan in accordance with the requirements of this subsection--
``(A) in the case of a family that, as of the date
of enactment of the Personal Responsibility and
Individual Development for Everyone Act, is not
receiving assistance from the State program funded
under this part, not later than the later of--
``(i) 1 year after such date of enactment;
or
``(ii) 60 days after the family first
receives assistance on the basis of the most
recent application for assistance; and
``(B) in the case of a family that, as of such
date, is receiving assistance under the State program
funded under this part, not later than 1 year after
such date of enactment.
``(8) Rule of interpretation.--Nothing in this subsection
shall preclude a State from--
``(A) requiring participation in work and any other
activities the State deems appropriate for helping
families achieve self-sufficiency and improving child
well-being; or
``(B) using job search or other appropriate job
readiness or work activities to assess the
employability of individuals and to determine
appropriate future engagement activities.''.
(B) Penalty for failure to comply with family self-
sufficiency plan requirements.--
(i) In general.--Section 409(a)(3) (42
U.S.C. 609(a)(3)) is amended--
(I) in the paragraph heading, by
inserting ``or comply with family self-
sufficiency plan requirements'' after
``rates'';
(II) in subparagraph (A), by
inserting ``or 408(b)'' after
``407(a)''; and
(III) by striking subparagraph (C)
and inserting the following:
``(C) Penalty based on severity of failure.--
``(i) Failure to satisfy minimum
participation rate.--If, with respect to fiscal
year 2007 or any fiscal year thereafter, the
Secretary finds that a State has failed or is
failing to substantially comply with the
requirements of section 407(a) for that fiscal
year, the Secretary shall impose reductions
under subparagraph (A) with respect to the
immediately succeeding fiscal year based on the
degree of substantial noncompliance. In
assessing the degree of substantial
noncompliance under section 407(a) for a fiscal
year, the Secretary shall take into account
factors such as--
``(I) the degree to which the State
missed the minimum participation rate
for that fiscal year;
``(II) the change in the number of
individuals who are engaged in work in
the State since the prior fiscal year;
and
``(III) the number of consecutive
fiscal years in which the State failed
to reach the minimum participation
rate.
``(ii) Failure to comply with self-
sufficiency plan requirements.--If, with
respect to fiscal year 2007 or any fiscal year
thereafter, the Secretary finds that a State
has failed or is failing to substantially
comply with the requirements of section 408(b)
for that fiscal year, the Secretary shall
impose reductions under subparagraph (A) with
respect to the immediately succeeding fiscal
year based on the degree of substantial
noncompliance. In assessing the degree of
substantial noncompliance under section 408(b),
the Secretary shall take into account factors
such as--
``(I) the number or percentage of
families for which a self-sufficiency
plan is not established in a timely
fashion for that fiscal year;
``(II) the duration of the delays
in establishing a self-sufficiency plan
during that fiscal year;
``(III) whether the failures are
isolated and nonrecurring; and
``(IV) the existence of systems
designed to ensure that self-
sufficiency plans are established for
all families in a timely fashion and
that families' progress under such
plans is monitored.
``(iii) Authority to reduce the penalty.--
The Secretary may reduce the penalty that would
otherwise apply under this paragraph if the
substantial noncompliance is due to
circumstances that caused the State to meet the
criteria of subclause (I), (II), or (III) of
section 403(b)(3)(A)(iii) or to satisfy the
applicable duration requirement of section
403(b)(3)(B) during the fiscal year, or if the
noncompliance is due to extraordinary
circumstances such as a natural disaster or
regional recession. The Secretary shall provide
a written report to Congress to justify any
waiver or penalty reduction due to such
extraordinary circumstances.''.
(ii) Effective date.--The amendments made
by this subparagraph take effect on October 1,
2006.
(3) GAO evaluation and report.--Not later than September
30, 2007, the Comptroller General of the United States shall
submit a report to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives
evaluating the implementation of the universal engagement
provisions under the temporary assistance to needy families
program under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), as added by the amendments made by this
subsection.
(4) Rules of Construction.--Nothing in this subsection or
the amendments made by this subsection shall be construed--
(A) as establishing a private right or cause of
action against a State for failure to comply with the
requirements imposed under this subsection or the
amendments made by this subsection; or
(B) as limiting claims that may be available under
other Federal or State laws.
(b) Transitional Compliance for Teen Parents.--
(1) In general.--Section 408(a)(5) (42 U.S.C. 608(a)(5)) is
amended--
(A) in subparagraph (A)(i), by striking
``subparagraph (B)'' and inserting ``subparagraphs (B)
and (C)''; and
(B) by adding at the end the following:
``(C) Authority to provide temporary assistance.--A
State may use any part of a grant made under section
403 to provide assistance to an individual described in
clause (ii) of subparagraph (A) who would otherwise be
prohibited from receiving such assistance under clause
(i) of that subparagraph, subparagraph (B), or section
408(a)(4) for not more than a single 60-day period in
order to assist the individual in meeting the
requirement of clause (i) of subparagraph (A),
subparagraph (B), or section 408(a)(4) for receipt of
such assistance.''.
(2) Inclusion of transitional living youth projects as a
form of adult-supervised setting.--Clause (i) of section
408(a)(5)(A) (42 U.S.C. 608(a)(5)(A)), as amended by paragraph
(1), is amended--
(A) by striking ``do not reside in a place of'' and
inserting ``do not reside in a--
``(I) place of'';
(B) by striking the period and inserting ``; or'';
and
(C) by adding at the end the following:
``(II) transitional living youth
project funded under a grant made under
section 321 of the Runaway and Homeless
Youth Act (42 U.S.C. 5714-1).''.
(c) Areas of Indian Country of High Joblessness.--Section
408(a)(7)(D) (42 U.S.C. 608(a)(7)(D)) is amended--
(1) in the subparagraph heading, by striking ``country''
and all that follows through ``unemployment'' and inserting
``country with high joblessness or in an alaskan native village
with 50 percent unemployment'';
(2) by redesignating clause (ii) as clause (v); and
(3) by striking clause (i) and inserting the following:
``(i) In general.--Subject to clauses (ii),
(iii), and (iv), in determining the number of
months for which an adult has received
assistance under a State or tribal program
funded under this part, the State or Indian
tribe shall disregard any month during which
the adult lived in Indian country if the most
reliable data available (or such other data
submitted by a State or tribal program as the
Secretary may approve) with respect to the
month (or a period including the month)
indicate that at least 40 percent of the adult
recipients, who were living in Indian country
were jobless.
``(ii) Economic downturn.--If--
``(I) in the case of a State
program funded under this part--
``(aa) the unemployment
rate of the State is at least
50 percent greater than the
unemployment rate of the United
States; and
``(bb) the State meets the
criteria of subclause (I),
(II), or (III) of section
403(b)(3)(A)(iii) and satisfies
the applicable duration
requirement of section
403(b)(3)(B): or
``(II) in the case of a tribal
program funded under this part, the
Indian tribe satisfies the criteria
specified under section
403(b)(1)(D)(ii),
clause (i) shall be applied by substituting `35
percent' for `40 percent'.
``(iii) Requirement.--A month may only be
disregarded under clause (i) with respect to an
adult recipient described in that clause if the
adult is in compliance with program
requirements.
``(iv) Continuation of 50 percent
unemployment requirement for an alaskan native
village.--In the case of an Alaskan Native
village, this subparagraph shall be applied
without regard to the amendments made by the
Personal Responsibility and Individual
Development for Everyone Act.''.
SEC. 111. PENALTIES.
(a) Maintenance of Certain Level of Historic Effort.--Section
409(a)(7) (42 U.S.C. 609(a)(7)) is amended--
(1) in subparagraph (A), by striking ``or 2006'' and
inserting ``2006, 2007, 2008, 2009, 2010, or 2011''; and
(2) in subparagraph (B)(ii)--
(A) by inserting ``preceding'' before ``fiscal
year''; and
(B) by striking ``for fiscal years 1997 through
2005,''.
(b) Implementing Work Program Improvement Through Corrective Action
Plan.--Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(A) In general.--The Secretary''; and
(2) by adding at the end the following:
``(B) No penalty if work program improvement.--The
Secretary shall not impose any penalty under subsection
(a)(3) for a State's failure to comply with section
407(a) for a fiscal year if the Secretary determines
that the participation rate determined for the State
under section 407(b)(1) for that fiscal year increased
by at least 5 percentage points above the participation
rate for the State for the preceding fiscal year and a
State corrective compliance plan accepted by the
Secretary specifies how the State will correct the
violation.''.
SEC. 112. DATA COLLECTION AND REPORTING.
(a) Contents of Report.--Section 411(a)(1)(A) (42 U.S.C.
611(a)(1)(A)) is amended--
(1) in the matter preceding clause (i), by inserting ``and
on families receiving assistance under State programs funded
with other qualified State expenditures (as defined in section
409(a)(7)(B)(i))'' before the colon;
(2) in clause (vii), by inserting ``and minor parent''
after ``of each adult'';
(3) in clause (viii), by striking ``and educational
level'';
(4) in clause (ix), by striking ``, and if the latter 2,
the amount received'';
(5) in clause (x)--
(A) by striking ``each type of''; and
(B) by inserting before the period ``and, if
applicable, the reason for receipt of the assistance
for a total of more than 60 months'';
(6) by striking clause (xi) and inserting the following:
``(xi) If the adult or minor child head of
household participated in, and the average number of
hours per week of participation in, each activity
listed in subsections (c)(1)(i)(II) (including average
hours per week in each different type of rehabilitative
activity as prescribed by the Secretary) and (d) of
section 407 and other work or self-sufficiency
activities.''.
(7) in clause (xii), by inserting ``and progress toward
universal engagement'' after ``participation rates'';
(8) in clause (xiii), by striking ``type and'' before
``amount of assistance'';
(9) in clause (xvi), by striking subclause (II) and
redesignating subclauses (III) through (V) as subclauses (II)
through (IV), respectively; and
(10) by adding at the end the following:
``(xviii) The date the family first
received assistance from the State program on
the basis of the most recent application for
such assistance.
``(xix) Whether a self-sufficiency plan is
established for the family in accordance with
section 408(b).
``(xx) With respect to any child in the
family, the marital status of the parents at
the birth of the child, and if the parents were
not then married, whether the paternity of the
child has been established.''.
(b) Use of Samples.--Section 411(a)(1)(B) (42 U.S.C. 611(a)(1)(B))
is amended--
(1) in clause (i)--
(A) by striking ``a sample'' and inserting
``samples''; and
(B) by inserting before the period ``, except that
the Secretary may designate core data elements that
must be reported on all families''; and
(2) in clause (ii), by striking ``funded under this part''
and inserting ``described in subparagraph (A)''.
(c) Report on Families That Become Ineligible To Receive
Assistance.--Section 411(a) (42 U.S.C. 611(a)) is amended--
(1) by striking paragraph (5);
(2) by redesignating paragraph (6) as paragraph (5); and
(3) by inserting after paragraph (5) (as so redesignated)
the following:
``(6) Report on families that become ineligible to receive
assistance.--
``(A) In general.--The report required by paragraph
(1) for a fiscal quarter shall include for each month
in the quarter the number of families and total number
of individuals that, during the month, became
ineligible to receive assistance under the State
program funded under this part (broken down by the
number of families that become so ineligible due to
earnings, changes in family composition that result in
increased earnings, sanctions, time limits, or other
specified reasons).
``(B) Information regarding families in separate
state programs.--The report required by paragraph (1)
for a fiscal quarter shall include for each month in
the quarter the number of families and total number of
individuals that, during the month, received assistance
under State programs funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)).''.
(d) Report on TANF-Funded Child Care.--Section 411(a) (42 U.S.C.
611(a)), as amended by subsection (c), is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following:
``(7) Report on tanf-funded child care.--
``(A) In general.--Subject to subparagraphs (B),
(C), and (D), the report required by paragraph (1) for
a fiscal quarter shall include for each month in the
quarter the information described in section 658K(a) of
the Child Care and Development Block Grant Act of 1990
with respect to each family that received child care
that was funded in whole or in part with funds provided
under section 403 (other than funds transferred under
section 404(d)) or with qualified State expenditures
(as defined in section 409(a)(7)(B)(i)), without regard
to whether the family is a recipient or former
recipient of assistance under the State program funded
under this part. A State may comply with the
requirement of this subparagraph through the use of
scientifically acceptable sampling methods approved by
the Secretary.
``(B) Coordination with other reporting
requirements.--
``(i) In general.--The Secretary shall
coordinate the reporting required under
subparagraph (A) with the reporting required
under the Child Care and Development Block
Grant Act of 1990 to ensure that States are not
required to report duplicate information on the
same families in order to satisfy both
requirements.
``(ii) Consolidated reporting.--
Notwithstanding section 658K(a) of the Child
Care and Development Block Grant Act of 1990,
the Secretary may permit a State to submit a
consolidated report to satisfy the reporting
required under subparagraph (A) and the
reporting required under section 658K(a) of the
Child Care and Development Block Grant Act of
1990, so long as the State identifies in the
consolidated report the funding source for the
child care provided to each family.
``(C) Waiver of reporting requirement.--The
Secretary may grant a State a waiver from the
requirement to comply with subparagraph (A) if--
``(i) the Secretary determines that the
State has demonstrated that it would be
administratively or financially burdensome for
the State to comply with such subparagraph; and
``(ii) in the case of a State, the State
agrees to post on a quarterly basis on the
website of the State such information as the
State may have regarding the characteristics of
the families that received child care that was
funded in whole or in part with funds provided
under this part.
``(D) Applicability.--Subparagraph (A) shall apply
to a State on and after the first fiscal quarter that
begins on or after 2 years after the date of enactment
of the Personal Responsibility and Individual
Development for Everyone Act.''.
(e) Regulations.--Paragraph (8) of section 411(a) (42 U.S.C.
611(a)), as redesignated by subsection (d)(1), is amended--
(1) by inserting ``and to collect the necessary data''
before ``with respect to which reports'';
(2) by striking ``subsection'' and inserting ``section'';
and
(3) by striking ``in defining the data elements'' and all
that follows and inserting ``, the National Governors'
Association, the American Public Human Services Association,
the National Conference of State Legislatures, and others in
defining the data elements.''.
(f) Additional Reports by States.--Section 411 (42 U.S.C. 611) is
amended--
(1) by redesignating subsection (b) as subsection (e); and
(2) by inserting after subsection (a) the following:
``(b) Annual Reports on Program Characteristics.--Not later than 90
days after the end of fiscal year 2006 and each succeeding fiscal year,
each eligible State shall submit to the Secretary a report on the
characteristics of State programs funded under this part and other
State programs funded with qualified State expenditures (as defined in
section 409(a)(7)(B)(i)). The report shall include, with respect to
each such program, the program name, a description of program
activities, the program purpose, the program eligibility criteria, the
sources of program funding, the number of program beneficiaries,
sanction policies, and any program work requirements.
``(c) Monthly Reports on Caseload.--Not later than 3 months after
the end of each calendar month that begins 1 year or more after the
date of enactment of this subsection, each eligible State shall submit
to the Secretary a report on the number of families and total number of
individuals receiving assistance in the calendar month under the State
program funded under this part and under other State programs funded
with qualified State expenditures (as defined in section
409(a)(7)(B)(i)).
``(d) Annual Report on Performance Improvement and Progress Toward
Universal Engagement.--Beginning with fiscal year 2007, not later than
January 1 of each fiscal year, each eligible State shall submit to the
Secretary a report--
``(1) on achievement and improvement during the preceding
fiscal year under the performance goals and measures under the
State program funded under this part or with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)) with
respect to each of the matters described in section
402(a)(1)(A)(v); and
``(2) that details State progress toward full engagement
for all adult or minor child head of household recipients of
assistance.''.
(g) Annual Reports to Congress by the Secretary.--Section 411(e)
(42 U.S.C. 611(e)), as so redesignated by subsection (f) of this
section, is amended--
(1) in the matter preceding paragraph (1), by striking
``and each fiscal year thereafter'' and inserting ``and not
later than July 1 of each fiscal year thereafter'';
(2) in paragraph (2), by striking ``families applying for
assistance,'' and by striking the last comma; and
(3) in paragraph (3), by inserting ``and other programs
funded with qualified State expenditures (as defined in section
409(a)(7)(B)(i))'' before the semicolon.
SEC. 113. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
(a) Funding for Tribal TANF programs.--
(1) Reauthorization of tribal family assistance grants.--
Section 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by
striking ``1997, 1998, 1999, 2000, 2001, 2002, and 2003'' and
inserting ``2006 through 2010''.
(2) Grants for indian tribes that received jobs funds.--
Section 412(a)(2) (42 U.S.C. 612(a)(2)) is amended--
(A) by striking subparagraph (A) and inserting the
following:
``(A) Grant authority.--For each of fiscal years
2006 through 2010, the Secretary shall pay to each
eligible Indian tribe that proposes to operate a
program described in subparagraph (C), a grant in an
amount that bears the same ratio to the amount
specified in subparagraph (D) of this paragraph as the
amount required to be paid to the tribe under this
paragraph for fiscal year 2004 bears to the total
amount required to be paid under this paragraph for
such fiscal year.''; and
(B) in subparagraph (D), by striking ``$7,633,287''
and inserting ``$12,633,287''.
(b) Tribal Welfare Programs.--Section 412(a) (42 U.S.C. 612(a)) is
amended by adding at the end the following:
``(4) Tribal improvement grants.--
``(A) Tribal capacity grants.--
``(i) In general.--Of the amount
appropriated under subparagraph (D) for the
period of fiscal years 2006 through 2010,
$40,000,000 shall be used by the Secretary to
award grants for tribal human services program
infrastructure improvement (as defined in
clause (v)) to--
``(I) Indian tribes that have
applied for approval of a tribal family
assistance plan and that meet the
requirements of clause (ii)(I);
``(II) Indian tribes with an
approved tribal family assistance plan
and that meet the requirements of
clause (ii)(II); and
``(III) Indian tribes that have
applied for approval of a foster care
and adoption assistance program under
section 479B or that plan to enter
into, or have in place, a tribal-State
cooperative agreement under section
479B(c) and that meet the requirements
of clause (ii)(III).
``(ii) Priorities for awarding of grants.--
The Secretary shall give priority in awarding
grants under this subparagraph as follows:
``(I) First, for grants to Indian
tribes that have applied for approval
of a tribal family assistance plan,
that have not operated such a plan as
of the date of enactment of the
Personal Responsibility and Individual
Development for Everyone Act that will
have such plan approved, and that
include in the plan submission
provisions for tribal human services
program infrastructure improvement (as
so defined) and related management
information systems training.
``(II) Second, for Indian tribes
with an approved tribal family
assistance plan that are not described
in subclause (I) and that submit an
addendum to such plan that includes
provisions for tribal human services
program infrastructure improvement that
includes implementing or improving
management information systems of the
tribe (including management information
systems training), as such systems
relate to the operation of the tribal
family assistance plan.
``(III) Third, for Indian tribes
that have applied for approval of a
foster care and adoption assistance
program under section 479B or that plan
to enter into, or have in place, a
tribal-State cooperative agreement
under section 479B(c) and that include
in the plan submission under section
471 (or in an addendum to such plan)
provisions for tribal human services
program infrastructure improvement (as
so defined) and related management
information systems training.
``(iii) Other requirements for awarding
grants.--In awarding grants under this
subparagraph, the Secretary--
``(I) may not award an Indian tribe
more than 1 grant under this
subparagraph per fiscal year;
``(II) shall award grants in such a
manner as to maximize the number of
Indian tribes that receive grants under
this subparagraph; and
``(III) shall consult with Indian
tribes located throughout the United
States.
``(iv) Application.--An Indian tribe
desiring a grant under this subparagraph shall
submit an application to the Secretary, at such
time, in such manner, and containing such
information as the Secretary may require.
``(v) Definition of human services program
infrastructure improvement.--In this
subparagraph, the term `human services program
infrastructure improvement' includes (but is
not limited to) improvement of management
information systems, management information
systems-related training, equipping offices,
and renovating, but not constructing,
buildings, as described in an application for a
grant under this subparagraph, and subject to
approval by the Secretary.
``(B) Tribal development grants.--
``(i) In general.--Of the amount
appropriated under subparagraph (D) for the
period of fiscal years 2006 through 2010,
$35,000,000 shall be used by the Secretary to
award, through the Commissioner of the
Administration for Native Americans, grants to
nonprofit organizations, Indian tribes, and
tribal organizations to enable such
organizations and tribes to provide technical
assistance to Indian tribes and tribal
organizations in any or all of the following
areas:
``(I) The development and
improvement of uniform commercial
codes.
``(II) The creation or expansion of
small business or microenterprise
programs.
``(III) The development and
improvement of tort liability codes.
``(IV) The creation or expansion of
tribal marketing efforts.
``(V) The creation or expansion of
for-profit collaborative business
networks.
``(VI) The development of
innovative uses of telecommunications
to assist with distance learning or
telecommuting.
``(VII) The development of economic
opportunities and job creation in areas
of high joblessness (as defined in
section 408(a)(7)(D)).
``(ii) Requirements.--
``(I) In general.--At least an
amount equal to 30 percent of the total
amount of grants awarded under this
subparagraph shall be awarded to carry
out clause (i)(VII).
``(II) Consultation.--In awarding
grants under this subparagraph the
Secretary shall consult with other
Federal agencies with expertise in the
areas described in clause (i).
``(iii) Application.--A nonprofit
organization, Indian tribe, or tribal
organization desiring a grant under this
subparagraph shall submit an application to the
Secretary at such time, in such manner, and
containing such information as the Secretary
may require.
``(C) Technical assistance.--
``(i) In general.--Of the amount
appropriated under subparagraph (D) for the
period of fiscal years 2006 through 2010,
$5,000,000 shall be used by the Secretary for
making grants, or entering into contracts, to
provide technical assistance to Indian tribes--
``(I) in applying for or carrying
out a grant made under this paragraph;
``(II) in applying for or carrying
out a tribal family assistance plan
under this section; or
``(III) related to best practices
and approaches for State and tribal
coordination on the transfer of the
administration of social services
programs to Indian tribes.
``(ii) Reservation of funds.--Not less
than--
``(I) $2,500,000 of the amount
described in clause (i) shall be used
by the Secretary to support, through
grants or contracts, peer-learning
programs among tribal administrators;
and
``(II) $1,000,000 of such amount
shall be used by the Secretary for
making grants to Indian tribes to
conduct feasibility studies of the
capacity of Indian tribes to operate
tribal family assistance plans under
this part or foster care and adoption
assistance programs under section 479B.
``(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there is appropriated $80,000,000 for the
period of fiscal years 2006 through 2010 to carry out
this paragraph. Amounts appropriated under this
subparagraph shall remain available until expended.''.
(c) Clarification of Application of Indian Employment, Training and
Related Services Demonstration Act of 1992.--Section 412 (42 U.S.C.612)
is amended by adding at the end the following:
``(j) Application of Indian employment, Training and Related
Services Demonstration Act of 1992.--Notwithstanding any other
provision of law, if an Indian tribe elects to incorporate the services
it provides using funds made available under this part into a plan
under section 6 of the Indian Employment, Training and Related Services
Demonstration Act of 1992 (25 U.S.C. 3405), the programs authorized to
be conducted with such funds shall be--
``(1) considered to be programs subject to section 5 of the
Indian Employment, Training and Related Services Demonstration
Act of 1992 (25 U.S.C. 3404); and
``(2) subject to the single plan and single budget
requirements of section 6 of that Act (25 U.S.C. 3505) and the
single report format required under section 11 of that Act (25
U.S.C. 3410).''.
(d) Ensuring Equitable Access.--
(1) State plan requirement.--Section 402(a)(1)(B) (42
U.S.C. 602(a)(1)(B)), as amended by section 101(a)(1)(B) is
amended by adding at the end the following:
``(viii) The document shall describe how
the State will ensure equitable access to
benefits and services provided under the
program for each member of an Indian tribe or
tribal organization, who is domiciled in the
State and is not eligible for assistance under
a tribal family assistance plan approved under
section 412.''.
(2) Tribal family assistance plan requirement.--Section
412(b)(1) of the Social Security Act (42 U.S.C. 612(b)(1)) is
amended--
(A) in subparagraph (E), by striking ``and'' at the
end;
(B) in subparagraph (F), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(G) describes how the Indian tribe will ensure
equitable access to benefits and services provided
under the plan for each member of the population to be
served by the plan.''.
(3) Consultation between states and indian tribes or other
indians residing on a reservation.--Section 402(a)(5) (42
U.S.C. 602(a)(5)) is amended by striking ``will'' and all that
follows through the period and inserting ``will--
``(A) consult with each Indian tribe and tribal
organization located within the State regarding the
State plan in order to ensure equitable access to
benefits and services provided under the plan for any
member of such a tribe or organization who is not
eligible for assistance under a tribal family
assistance plan approved under section 412; and
``(B) provide each member of an Indian tribe or
tribal organization, who is domiciled in the State and
is not eligible for assistance under a tribal family
assistance plan approved under section 412, with
equitable access to assistance under the State program
funded under this part attributable to funds provided
by the Federal Government.''.
(e) Annual Report to Congress.--
(1) Inclusion of information on indians served by state
programs.--Section 411(e) (42 U.S.C. 611(e)), as redesignated
by section 112(f)(1), is amended--
(A) in paragraph (3), by striking ``and'' at the
end;
(B) in paragraph (4), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) State specific information on the demographics and
caseload characteristics of Indians served by each State
program funded under this part or with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)).''.
(2) Conforming amendments.--Section 411(a) of the Social
Security Act (42 U.S.C. 611(a)), as amended by section 112(d),
is amended--
(A) by redesignating paragraph (8) as paragraph
(9); and
(B) by inserting after paragraph (7), the
following:
``(8) Report on indians served by the state program.--The
report required by paragraph (1) for a fiscal quarter shall
include information on the demographics and caseload
characteristics of Indians served by each State program funded
under this part or with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)) during the quarter.''.
(g) GAO Study and Report.--
(1) Study.--The Comptroller General of the United States
shall conduct a study of the demographics of Indians who do
not--
(A) reside in Indian country (as defined in section
1151 of title 18, United States Code);
(B) reside in Alaska; or
(C) receive assistance under a tribal family
assistance plan under section 412 of the Social
Security Act (42 U.S.C. 612).
(2) Requirement.--The study conducted under subparagraph
(A) shall include economic and health information regarding the
Indians described in that paragraph, as well as information
regarding the access of all Indians to benefits or services
available under non-tribal publicly funded programs serving
low-income families.
(3) Report.--Not later than January 1, 2007, the
Comptroller General shall submit to Congress a report on the
study conducted under paragraph (1).
SEC. 114. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
(a) Secretary's Fund for Research, Demonstrations, and Technical
Assistance.--
(1) In general.--Section 413 (42 U.S.C. 613), as amended by
section 103(c), is amended by adding at the end the following:
``(m) Funding for Research, Demonstrations, and Technical
Assistance.--
``(1) Appropriation.--
``(A) In general.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated $100,000,000 for each of fiscal years
2005 through 2010, which shall remain available to the
Secretary until expended.
``(B) Use of funds.--
``(i) In general.--Funds appropriated under
subparagraph (A) shall be used for the purpose
of--
``(I) conducting or supporting
research and demonstration projects by
public or private entities; or
``(II) providing technical
assistance in connection with a purpose
of the program funded under this part,
as described in section 401(a), to
States, Indian tribal organizations,
sub-State entities, and such other
entities as the Secretary may specify.
``(ii) Requirement.--Not less than 80
percent of the funds appropriated under
subparagraph (A) for a fiscal year shall be
expended for the purpose of conducting or
supporting research and demonstration projects,
or for providing technical assistance, in
connection with activities described in section
403(a)(2)(B). Funds appropriated under
subparagraph (A) and expended in accordance
with this clause shall be in addition to any
other funds made available under this part for
activities described in section 403(a)(2)(B).
``(2) Secretary's authority.--The Secretary may conduct
activities authorized by this subsection directly or through
grants, contracts, or interagency agreements with public or
private entities.
``(3) Requirement for use of funds.--The Secretary shall
not pay any funds appropriated under paragraph (1)(A) to an
entity for the purpose of conducting or supporting research and
demonstration projects involving activities described in
section 403(a)(2)(B) unless the entity complies with the
requirements of section 403(a)(2)(E).''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date of enactment of this Act.
(b) Funding of Studies and Demonstrations.--Section 413(h)(1) (42
U.S.C. 613(h)(1)) is amended in the matter preceding subparagraph (A)
by striking ``1997 through 2002'' and inserting ``2006 through 2010''.
(c) Program Coordination Demonstration Projects.--
(1) Purpose.--The purpose of this subsection is to
establish a program of demonstration projects in a State or
portion of a State to coordinate assistance provided under
qualified programs for the purpose of supporting working
individuals and families, helping families escape welfare
dependency, promoting child well-being, or helping build
stronger families, using innovative approaches to strengthen
service systems and provide more coordinated and effective
service delivery.
(2) Definitions.--In this subsection:
(A) Qualified program.--The term ``qualified
program'' means--
(i) a program under part A of title IV of
the Social Security Act (42 U.S.C. 601 et
seq.);
(ii) the program under title XX of the
Social Security Act (42 U.S.C. 1397 et seq.);
and
(iii) child care assistance funded under
section 418 of the Social Security Act (42
U.S.C. 618).
(B) Secretary.--The term ``Secretary'' means the
Secretary of Health and Human Services.
(3) Application requirements.--The head of a State entity
or of a sub-State entity administering 2 or more qualified
programs proposed to be included in a demonstration project
under this subsection shall (or, if the project is proposed to
include qualified programs administered by 2 or more such
entities, the heads of the administering entities (each of whom
shall be considered an applicant for purposes of this
subsection) shall jointly) submit to the Secretary an
application that contains the following:
(A) Programs included.--A statement identifying
each qualified program to be included in the project,
and describing how the purposes of each such program
will be achieved by the project.
(B) Population served.--A statement identifying the
population to be served by the project and specifying
the eligibility criteria to be used.
(C) Description and justification.--A detailed
description of the project, including--
(i) a description of how the project is
expected to improve or enhance achievement of
the purposes of the programs to be included in
the project, from the standpoint of quality, of
cost-effectiveness, or of both; and
(ii) a description of the performance
objectives for the project, including any
proposed modifications to the performance
measures and reporting requirements used in the
programs.
(D) Waivers requested.--A description of the
statutory and regulatory requirements with respect to
which a waiver is requested in order to carry out the
project, and a justification of the need for each such
waiver.
(E) Cost neutrality.--Such information and
assurances as necessary to establish to the
satisfaction of the Secretary, in consultation with the
Director of the Office of Management and Budget, that
the proposed project is reasonably expected to meet the
applicable cost neutrality requirements of paragraph
(4)(E).
(F) Evaluation and reports.--An assurance that the
applicant will--
(i) obtain an evaluation by an independent
contractor of the effectiveness of the project
using an evaluation design that, to the maximum
extent feasible, includes random assignment of
clients (or entities serving such clients) to
service delivery and control groups; and
(ii) make interim and final reports to the
Secretary, at such times and in such manner as
the Secretary may require.
(G) Other information and assurances.--Such other
information and assurances as the Secretary may
require.
(4) Approval of applications.--
(A) In general.--The Secretary with respect to a
qualified program that is identified in an application
submitted pursuant to subsection (c) may approve the
application and, except as provided in subparagraph
(B), waive any requirement applicable to the program,
to the extent consistent with this subsection and
necessary and appropriate for the conduct of the
demonstration project proposed in the application, if
the Secretary determines that the project--
(i) has a reasonable likelihood of
achieving the objectives of the programs to be
included in the project;
(ii) may reasonably be expected to meet the
applicable cost neutrality requirements of
subparagraph (E), as determined by the Director
of the Office of Management and Budget;
(iii) includes the coordination of 2 or
more qualified programs; and
(iv) provides for an independent evaluation
that includes random assignment to the maximum
extent feasible, as described in paragraph
(3)(F), and which the Secretary determines to
be appropriate for assessing the effectiveness
of the project.
(B) Provisions excluded from waiver authority.--A
waiver shall not be granted under subparagraph (A)--
(i) with respect to any provision of law
relating to--
(I) civil rights or prohibition of
discrimination;
(II) purposes or goals of any
program;
(III) maintenance of effort
requirements;
(IV) health, safety, or a licensing
requirement;
(V) requirements relating to the
use of financial assistance for
activities to improve the quality and
availability of child care;
(VI) report and audit requirements
of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858 et
seq.);
(VII) requirements of that Act that
limit what financial assistance shall
be expended for;
(VIII) the State plan and State
application requirements specified in
section 658E of that Act (42 U.S.C.
9858c);
(IX) labor standards under the Fair
Labor Standards Act of 1938; or
(X) environmental protection;
(ii) in the case of child care assistance
funded under section 418 of the Social Security
Act (42 U.S.C. 618), with respect to the
requirement under the first sentence of
subsection (b)(1) of that section that funds
received by a State under that section shall
only be used to provide child care assistance;
(iii) with respect to any requirement that
a State pass through to a sub-State entity part
or all of an amount paid to the State;
(iv) if the waiver would waive any funding
restriction or limitation provided in an
appropriations Act, or would have the effect of
transferring appropriated funds from 1
appropriations account to another; or
(v) except as otherwise provided by
statute, if the waiver would waive any funding
restriction applicable to a program authorized
under an Act which is not an appropriations Act
(but not including program requirements such as
application procedures, performance standards,
reporting requirements, or eligibility
standards), or would have the effect of
transferring funds from a program for which
there is direct spending (as defined in section
250(c)(8) of the Balanced Budget and Emergency
Deficit Control Act of 1985) to another
program.
(C) 10 state limitation.--The Director of the
Office of Management and Budget shall establish a
procedure for ensuring that not more than 10 States
(including any portion of a State) conduct a
demonstration project under this subsection.
(D) Agreement of secretary required.--
(i) In general.--An applicant may not
conduct a demonstration project under this
subsection unless the Secretary, with respect
to each qualified program proposed to be
included in the project, has approved the
application to conduct the project.
(ii) Agreement with respect to funding and
implementation.--Before approving an
application to conduct a demonstration project
under this subsection, the Secretary shall have
in place an agreement with the applicant with
respect to the payment of funds and
responsibilities required of the Secretary with
respect to the project.
(E) Cost-neutrality requirement.--
(i) General rule.--Notwithstanding any
other provision of law (except as provided in
clause (ii)), the total of the amounts that may
be paid by the Federal Government for a fiscal
year with respect to the programs in the State
in which an entity conducting a demonstration
project under this subsection is located that
are affected by the project shall not exceed
the estimated total amount that the Federal
Government would have paid for the fiscal year
with respect to the programs if the project had
not been conducted, as determined by the
Director of the Office of Management and
Budget.
(ii) Special rule.--If an applicant submits
to the Director of the Office of Management and
Budget a request to apply the rules of this
clause to the programs in the State in which
the applicant is located that are affected by a
demonstration project proposed in an
application submitted by the applicant pursuant
to this section, during such period of not more
than 5 consecutive fiscal years in which the
project is in effect, and the Director
determines, on the basis of supporting
information provided by the applicant, to grant
the request, then, notwithstanding any other
provision of law, the total of the amounts that
may be paid by the Federal Government for the
period with respect to the programs shall not
exceed the estimated total amount that the
Federal Government would have paid for the
period with respect to the programs if the
project had not been conducted.
(F) 90-day approval deadline.--
(i) In general.--If the Secretary receives
an application to conduct a demonstration
project under this subsection and does not
disapprove the application within 90 days after
the receipt, then, subject to the 10 State
limitation under paragraph (3)--
(I) the Secretary is deemed to have
approved the application for such
period as is requested in the
application, except to the extent
inconsistent with paragraph (5); and
(II) any waiver requested in the
application which applies to a
qualified program that is identified in
the application and is administered by
the Secretary is deemed to be granted,
except to the extent inconsistent with
subparagraph (B) or (E) of this
paragraph.
(ii) Deadline extended if additional
information is sought.--The 90-day period
referred to in clause (i) shall not include any
period that begins with the date the Secretary
requests the applicant to provide additional
information with respect to the application and
ends with the date the additional information
is provided.
(5) Duration of projects.--A demonstration project under
this subsection may be approved for a term of not more than 5
years.
(6) Reports to congress.--
(A) Report on disposition of applications.--Within
90 days after the date the Secretary receives an
application submitted pursuant to this subsection, the
Secretary shall submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the
House of Representatives notice of the receipt, a
description of the decision of the Secretary with
respect to the application, and the reasons for
approving or disapproving the application.
(B) Reports on projects.--The Secretary shall
provide annually to Congress a report concerning
demonstration projects approved under this subsection,
including--
(i) the projects approved for each
applicant;
(ii) the number of waivers granted under
this subsection, and the specific statutory
provisions waived;
(iii) how well each project for which a
waiver is granted is improving or enhancing
program achievement from the standpoint of
quality, cost-effectiveness, or both;
(iv) how well each project for which a
waiver is granted is meeting the performance
objectives specified in paragraph (3)(C)(ii);
(v) how each project for which a waiver is
granted is conforming with the cost-neutrality
requirements of paragraph (4)(E); and
(vi) to the extent the Secretary deems
appropriate, recommendations for modification
of programs based on outcomes of the projects.
(d) Research on Indicators of Child Well-Being.--Section 413 (42
U.S.C. 613), as amended by subsection (a)(1), is amended by adding at
the end the following:
``(n) Indicators of Child Well-Being.--
``(1) In general.--The Secretary, through grants,
contracts, or interagency agreements shall develop
comprehensive indicators to assess child well-being in each
State.
``(2) Requirements.--
``(A) In general.--The indicators developed under
paragraph (1) shall include measures related to the
following:
``(i) Education.
``(ii) Social and emotional development.
``(iii) Health and safety.
``(iv) Family well-being, such as family
structure, income, employment, child care
arrangements, and family relationships.
``(B) Other requirements.--The data collected with
respect to the indicators developed under paragraph (1)
shall be--
``(i) statistically representative at the
State level;
``(ii) consistent across States;
``(iii) collected on an annual basis for at
least the 5 years following the first year of
collection;
``(iv) expressed in terms of rates or
percentages;
``(v) statistically representative at the
national level;
``(vi) measured with reliability;
``(vii) current;
``(viii) over-sampled, with respect to low-
income children and families; and
``(ix) made publicly available.
``(C) Consultation.--In developing the indicators
required under paragraph (1) and the means to collect
the data required with respect to the indicators, the
Secretary shall consult and collaborate with the
Federal Interagency Forum on Child and Family
Statistics.
``(3) Advisory panel.--
``(A) Establishment.--The Secretary shall establish
an advisory panel to make recommendations regarding the
appropriate measures and statistical tools necessary
for making the assessment required under paragraph (1)
based on the indicators developed under that paragraph
and the data collected with respect to the indicators.
``(B) Membership.--
``(i) In general.--The advisory panel
established under subparagraph (A) shall
consist of the following:
``(I) One member appointed by the
Secretary of Health and Human Services.
``(II) One member appointed by the
Chairman of the Committee on Ways and
Means of the House of Representatives.
``(III) One member appointed by the
Ranking Member of the Committee on Ways
and Means of the House of
Representatives.
``(IV) One member appointed by the
Chairman of the Committee on Finance of
the Senate.
``(V) One member appointed by the
Ranking Member of the Committee on
Finance of the Senate.
``(VI) One member appointed by the
Chairman of the National Governors
Association, or the Chairman's
designee.
``(VII) One member appointed by the
President of the National Conference of
State Legislatures or the President's
designee.
``(VIII) One member appointed by
the Director of the National Academy of
Sciences, or the Director's designee.
``(ii) Deadline.--The members of the
advisory panel shall be appointed not later
than 2 months after the date of enactment of
the Personal Responsibility and Individual
Development for Everyone Act.
``(C) Meetings.--The advisory panel established
under subparagraph (A) shall meet--
``(i) at least 3 times during the first
year after the date of enactment of the
Personal Responsibility and Individual
Development for Everyone Act; and
``(ii) annually thereafter for the 3
succeeding years.
``(4) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for each of fiscal years 2006 through 2010,
$10,000,000 for the purpose of carrying out this subsection.''.
(e) Domestic Violence Prevention Grants.--Section 413 (42 U.S.C.
613), as amended by subsection (d), is amended by adding at the end the
following:
``(o) Domestic Violence Prevention Grants.--
``(1) In general.--The Secretary shall award grants to
eligible entities to enable such entities to carry out domestic
violence prevention activities. In carrying out this
subsection, the Secretary shall make public the criteria to be
used by the Secretary for awarding such grants.
``(2) Eligibility.--To be eligible to receive a grant under
this subsection, an entity shall--
``(A) be a State, Indian tribe or tribal
organization, or nonprofit domestic violence prevention
organization; and
``(B) submit to the Secretary an application at
such time, in such manner, and containing such
information as the Secretary may require.
``(3) Activities.--An entity shall use amounts received
under a grant awarded under this subsection to--
``(A) develop and disseminate best practices for
addressing domestic violence (as defined in section
402(a)(7)(B));
``(B) implement voluntary skills programs on
domestic violence as a barrier to economic security,
including providing caseworker training, technical
assistance, and voluntary services for victims of
domestic violence;
``(C) provide broad-based income support and
supplementation strategies that provide increased
assistance to low-income working adults, such as
housing, transportation, and transitional benefits as a
means to reduce domestic violence; or
``(D) carry out programs to enhance relationship
skills and financial management skills, to teach
individuals how to control aggressive behavior, and to
disseminate information on the causes of domestic
violence and child abuse.
``(4) Matching requirement.--The Secretary may not award a
grant to an entity under this subsection unless the entity
agrees that, with respect to the costs to be incurred by the
entity in carrying out the program for which the grant was
awarded, the entity will make available (directly or through
donations from public or private entities) non-Federal
contributions toward such costs in an amount equal to not less
than 25 percent of such costs ($1 for each $3 of Federal funds
provided under the grant).
``(5) Required consultation.--The Secretary may not award a
grant to a State or an Indian tribe or tribal organization
under this subsection unless such State, tribe, or tribal
organization agrees, in carrying out activities under the
grant, to consult with National, State, local, or tribal
organizations with demonstrated expertise in providing aid to
victims of domestic violence.
``(6) Evaluation and report.--The Secretary shall, by
grant, contract, or interagency agreement, conduct an
evaluation of the activities carried out with grants awarded
under this subsection and shall submit a report to Congress on
the results of such evaluation.
``(7) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection, $20,000,000
for each of fiscal years 2006 through 2010.''.
(f) Research on Tribal Welfare Programs and Poverty Among
Indians.--Section 413 (42 U.S.C. 613), as amended by subsection (e), is
amended by adding at the end the following:
``(p) Tribal Welfare Programs and Efforts To Reduce Poverty Among
Indians.--
``(1) In general.--The Secretary, directly or through
grants, contracts, or interagency agreements, shall conduct
research on tribal family assistance programs conducted under
section 412 and other tribal welfare programs and on efforts to
reduce poverty among Indians.
``(2) Priority for certain applications.--With respect to
applications for grants under paragraph (1), the Secretary
shall give priority to applications to conduct research in
cooperation with tribal governments or tribally controlled
colleges or universities.
``(3) Technical assistance.--The Secretary may use funds
appropriated under paragraph (4) to provide technical
assistance concerning data reporting and collection with
respect to research conducted under this subsection.
``(4) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated $2,000,000 for fiscal year 2006 for the purpose of
carrying out this subsection. Funds appropriated under this
paragraph shall remain available to the Secretary until
expended.''.
(g) Report on Enforcement of Certain Affidavits of Support and
Sponsor Deeming.--Not later than March 31, 2006, the Secretary of
Health and Human Services, in consultation with the Attorney General,
shall submit to the Congress a report on the enforcement of affidavits
of support and sponsor deeming as required by sections 421, 422, and
432 of the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996.
SEC. 115. STUDY BY THE CENSUS BUREAU.
(a) In General.--Section 414(a) (42 U.S.C. 614(a)) is amended to
read as follows:
``(a) In General.--The Bureau of the Census shall implement or
enhance a longitudinal survey of program participation, developed in
consultation with the Secretary and made available to interested
parties, to allow for the assessment of the outcomes of continued
welfare reform on the economic and child well-being of low-income
families with children, including those who received assistance or
services from a State program funded under this part, and, to the
extent possible, shall provide State representative samples. The
content of the survey should include such information as may be
necessary to examine the issues of out-of-wedlock childbearing,
marriage, welfare dependency and compliance with work requirements, the
beginning and ending of spells of assistance, work, earnings and
employment stability, and the well-being of children.''.
(b) Reports on the Well-Being of Children and Families.--Section
414 (42 U.S.C. 614), as amended by subsection (a), is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Reports on the Well-Being of Children and Families.--
``(1) In general.--Not later than 24 months after the date
of enactment of the Personal Responsibility and Individual
Development for Everyone Act, the Secretary of Commerce shall
prepare and submit to the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of
Representatives a report on the well-being of children and
families using data collected under subsection (a).
``(2) Second report.--Not later than 60 months after such
date of enactment, the Secretary of Commerce shall submit a
second report to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives on
the well-being of children and families using data collected
under subsection (a).
``(3) Inclusion of comparable measures.--Where comparable
measures for data collected under subsection (a) exist in
surveys previously administered by the Bureau of the Census,
appropriate comparisons shall be made and included in each
report required under this subsection on the well-being of
children and families to assess changes in such measures.''.
(c) Appropriation.--Section 414(c) (42 U.S.C. 614(c)), as
redesignated by subsection (b)(1), is amended by striking ``1996,'' and
all that follows through the period and inserting ``2006 through 2010
for payment to the Bureau of the Census to carry out this section.
Funds appropriated under this subsection for a fiscal year shall remain
available through fiscal year 2010 to carry out this section.''.
SEC. 116. FUNDING FOR CHILD CARE.
(a) Increase in Mandatory Funding.--Section 418(a)(3) (42 U.S.C.
618(a)(3)) is amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) $2,917,000,000 for each of fiscal years 2006
through 2010.''.
(b) Reservation of Child Care Funds.--
(1) In general.--Section 418(a)(4) (42 U.S.C. 618(a)(4)) is
amended to read as follows:
``(4) Amounts reserved.--
``(A) Indian tribes and tribal organizations.--
``(i) In general.--The Secretary shall
reserve 2 percent of the aggregate amount
appropriated to carry out this section for a
fiscal year for payments to Indian tribes and
tribal organizations for such fiscal year for
the purpose of providing child care assistance.
``(ii) Application of ccdbg requirements.--
Payments made under this subparagraph shall be
subject to the requirements that apply to
payments made to Indian tribes and tribal
organizations under the Child Care and
Development Block Grant Act of 1990.
``(B) Territories.--
``(i) Puerto rico.--The Secretary shall
reserve 1.5 percent of the amount appropriated
under paragraph (5)(A)(i) for a fiscal year for
payments to the Commonwealth of Puerto Rico for
such fiscal year for the purpose of providing
child care assistance.
``(ii) Other territories.--The Secretary
shall reserve 0.5 percent of the amount
appropriated under paragraph (5)(A)(i) for a
fiscal year for payments to Guam, American
Samoa, the Virgin Islands of the United States,
and the Commonwealth of the Northern Mariana
Islands in amounts which bear the same ratio to
such amount as the amounts allotted to such
territories under section 658O of the Child
Care and Development Block Grant Act of 1990
for the fiscal year bear to the total amount
reserved under such section for that fiscal
year.
``(iii) Application of ccdbg
requirements.--Payments made under this
subparagraph shall be subject to the
requirements that apply to payments made to
territories under the Child Care and
Development Block Grant Act of 1990.''.
(2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C.
1308(a)(2)), as amended by section 108(b)(3), is amended by
striking ``or 413(f)'' and inserting ``413(f), or
418(a)(4)(B)''.
(c) Supplemental Grants.--Section 418(a) (42 U.S.C. 618(a)) is
amended--
(1) by redesignating paragraph (5) as paragraph (7); and
(2) by inserting after paragraph (4), the following:
``(5) Supplemental grants.--
``(A) Appropriation.--
``(i) In general.--For supplemental grants
under this section, there are appropriated--
``(I) $700,000,000 for fiscal year
2006;
``(II) $800,000,000 for fiscal year
2007;
``(III) $1,000,000,000 for fiscal
year 2008;
``(IV) $1,100,000,000 for fiscal
year 2009; and
``(V) $1,400,000,000 for fiscal
year 2010.
``(ii) Availability.--Amounts appropriated
under clause (i) for a fiscal year shall be in
addition to amounts appropriated under
paragraph (3) for such fiscal year and shall
remain available for expenditure through fiscal
year 2010.
``(B) Supplemental grant.--In addition to the
grants paid to a State under paragraphs (1) and (2) for
each of fiscal years 2006 through 2010, the Secretary,
after reserving the amounts described in subparagraphs
(A) and (B) of paragraph (4) and subject to the
requirements described in paragraph (6), shall pay each
State an amount which bears the same ratio to the
amount specified in subparagraph (A)(i) for the fiscal
year (after such reservations), as the amount allotted
to the State under paragraph (2)(B) for fiscal year
2003 bears to the amount allotted to all States under
that paragraph for such fiscal year.
``(C) Budget scoring.--Notwithstanding section
257(b)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985, the baseline shall assume that no
grant shall be made under this paragraph after fiscal
year 2010.
``(6) Requirements.--
``(A) Maintenance of effort.--A State may not be
paid a supplemental grant under paragraph (5) for a
fiscal year unless the State ensures that the level of
State expenditures for child care for such fiscal year
is not less than the sum of--
``(i) the level of State expenditures for
child care that were matched under a grant made
to the State under paragraph (2) for fiscal
year 2003; and
``(ii) the level of State expenditures for
child care that the State reported as
maintenance of effort expenditures for purposes
of paragraph (2) for fiscal year 2003.
``(B) Matching requirement for fiscal years 2009
and 2010.--With respect to the amount of the
supplemental grant made to a State under paragraph (5)
for each of fiscal years 2009 and 2010 that is in
excess of the amount of the grant made to the State
under paragraph (5) for fiscal year 2008, subparagraph
(C) of paragraph (2) shall apply to such excess amount
in the same manner as such subparagraph applies to
grants made under subparagraph (A) of paragraph (2) for
each of fiscal years 2009 and 2010, respectively.
``(C) Redistribution.--In the case of a State that
fails to satisfy the requirement of subparagraph (A)
for a fiscal year, the supplemental grant determined
under paragraph (5) for the State for that fiscal year
shall be redistributed in accordance with paragraph
(2)(D).''.
(d) Definition of Valid Taxpayer Identification Number for Earned
Income Credit.--
(1) In general.--Section 32(m) of the Internal Revenue Code
of 1986 is amended to read as follows:
``(m) Identification Numbers.--Solely for purposes of subsections
(c)(1)(E) and (c)(3)(D), a taxpayer identification number means a
social security number assigned by the Social Security Administration--
``(1) to a citizen of the United States, or
``(2) to an individual pursuant to subclause (I) (or that
portion of subclause (III) that relates to subclause (I)) of
section 205(c)(2)(B)(i) of the Social Security Act.''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after the date of
enactment of this Act.
(e) Denial of Child Credit for Individuals Electing Section 911.--
(1) In general.--Section 24 of the Internal Revenue Code of
1986 (relating to child tax credit) is amended by adding at the
end the following new subsection:
``(g) Denial of Credit for Individuals Electing Section 911.--No
credit shall be allowed under this section for any taxable year to a
taxpayer who claims the benefits of section 911 (relating to citizens
or residents living abroad) for such taxable year.''.
(2) Conforming amendment.--Section 24(b)(1) of the Internal
Revenue Code of 1986 is amended by striking ``section 911, 931,
or 933'' and inserting ``section 931 or 933''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of
enactment of this Act.
(f) Modification of Eligibility Rules for Child-Related Tax
Benefits.--
(1) Rules involving parents.--Paragraph (4) of section
152(c) of the Internal Revenue Code of 1986 (relating to
qualifying child) is amended to read as follows:
``(4) Special rules for claiming qualifying child.--
``(A) Rules involving parents.--
``(i) In general.--A taxpayer other than a
parent of an individual may not claim such
individual as a qualifying child for any
taxable year beginning in a calendar year if--
``(I) a parent is eligible to claim
and claims such individual as a
qualifying child for any taxable year
beginning in such calendar year, or
``(II) the taxpayer has a lower
adjusted gross income than any parent
who may claim such individual as a
qualifying child for any taxable year
beginning in such calendar year.
``(ii) More than 1 parent claiming
qualifying child.--If the parents claiming any
qualifying child do not file a joint return
together, such child shall be treated as the
qualifying child of--
``(I) the parent with whom the
child resided for the longest period of
time during the taxable year, or
``(II) if the child resides with
both parents for the same amount of
time during such taxable year, the
parent with the highest adjusted gross
income.
``(B) Rule for 2 or more nonparents claiming
qualifying child.--If an individual may be and is
claimed as a qualifying child by 2 or more taxpayers,
neither of whom is a parent of the individual, for a
taxable year beginning in the same calendar year, such
individual shall be treated as the qualifying child of
the taxpayer with the highest adjusted gross income for
such taxable year.''.
(2) Special rule involving siblings claiming earned income
credit.--Section 32(c)(1)(B) of the Internal Revenue Code of
1986 (relating to qualifying child ineligible) is amended by
adding at the end the following new sentence: ``The preceding
sentence shall not apply with respect to any individual who is
a qualifying child of 1 or more brothers, sisters,
stepbrothers, and stepsisters who are also qualifying children
of such individual if among all such qualifying children, such
individual has the highest adjusted gross income.''.
(3) Technical corrections related to the working families
tax relief act of 2004.--
(A) Amendment related to section 203 of the act.--
Subparagraph (B) of section 21(b)(1) of the Internal
Revenue Code of 1986 is amended by inserting ``(as
defined in section 152, determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B))'' after
``dependent of the taxpayer''.
(B) Amendment related to section 207 of the act.--
Subparagraph (A) of section 223(d)(2) of such Code is
amended by inserting ``, determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B) thereof''
after ``section 152''.
(4) Effective dates.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by this subsection shall apply
to taxable years beginning after December 31, 2004.
(B) Technical corrections.--The amendments made by
paragraph (3) shall take effect as if included in the
provisions of the Working Families Tax Relief Act of
2004 to which they relate.
SEC. 117. DEFINITIONS.
(a) In General.--Section 419 (42 U.S.C. 619) is amended by adding
at the end the following:
``(6) Assistance.--
``(A) In general.--The term `assistance' means
cash, payments, vouchers, and other forms of benefits
designed to meet a family's ongoing basic needs
(including for food, clothing, shelter, utilities,
household goods, personal care items and general
incidental expenses).
``(B) Inclusion of certain benefits.--Such term
includes benefits even when they are--
``(i) provided in the form of payments by a
State agency responsible for administering the
State program funded under this part, or other
agency on its behalf, to individual recipients;
and
``(ii) conditioned on participation in work
experience or community service (or any other
work activity under the State program funded
under this part or with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)).
``(C) Exclusion of certain benefits.--Such term
does not include--
``(i) nonrecurrent, short-term benefits
that--
``(I) are designed to deal with a
specific crisis situation or episode of
need;
``(II) are not intended to meet
recurrent or ongoing needs; and
``(III) will not extend beyond 4
months;
``(ii) work subsidies (such as payments to
employers or third parties to help cover the
costs of employee wages, benefits, supervision,
and training);
``(iii) supportive services such as child
care and transportation;
``(iv) refundable earned income tax
credits;
``(v) contributions to, and distributions
from, Individual Development Accounts;
``(vi) services such as counseling, case
management, peer support, child care
information and referral, transitional
services, job retention, job advancement, and
other employment-related services that do not
provide basic income support; and
``(v) transportation benefits provided
under a Job Access or Reverse Commute project,
pursuant to section 404(k), to an individual
who is not otherwise receiving assistance.
``(D) Applicability.--Unless otherwise provided,
the definition of `assistance' under this paragraph--
``(i) only applies for purposes of the
State program funded under this part or a
program funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)); and
``(ii) does not preclude a State from
providing other types of benefits and services
in support of the purposes of the State program
funded under this part or a program funded with
qualified State expenditures (as so
defined).''.
(b) Conforming Amendments.--
(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by
striking ``assistance'' and inserting ``aid''.
(2) Section 404(f) (42 U.S.C. 604(f)) is amended by
striking ``assistance'' and inserting ``benefits or services''.
(3) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is amended by
striking ``assistance'' and inserting ``aid''.
(4) Section 5(g)(2)(D) of the Food Stamp Act of 1977 (7
U.S.C. 2014(g)(2)(D)) is amended--
(A) by striking ``If the vehicle allowance'' and
inserting the following:
``(i) In general.--If the vehicle
allowance''; and
(B) by adding at the end the following:
``(ii) Definition of assistance.--In clause
(i), the term `assistance' shall have the
meaning given such term in section 260.31 of
title 45 of the Code of Federal Regulations, as
in effect on June 1, 2002.''.
(5) Section 1137(b)(1) (42 U.S.C. 1320b-7(b)(1)) is amended
by inserting ``, but only with respect to applicants for, or
recipients of, assistance (as defined in section 419(6)) under
such program'' before the semicolon.
SEC. 118. RESPONSIBLE FATHERHOOD PROGRAM.
(a) Responsible Fatherhood Program.--
(1) Findings.--Congress makes the following findings:
(A) Nearly 24,000,000 children in the United
States, or 34 percent of all such children, live apart
from their biological father.
(B) Sixty percent of couples who divorce have at
least 1 child.
(C) The number of children living with only a
mother increased from just over 5,000,000 in 1960 to
17,000,000 in 1999, and between 1981 and 1991 the
percentage of children living with only 1 parent
increased from 19 percent to 25 percent.
(D) Forty percent of children who live in
households without a father have not seen their father
in at least 1 year and 50 percent of such children have
never visited their father's home.
(E) The most important factor in a child's
upbringing is whether the child is brought up in a
loving, healthy, supportive environment.
(F) Children who live without contact with their
biological father are, in comparison to children who
have such contact--
(i) 5 times more likely to live in poverty;
(ii) more likely to bring weapons and drugs
into the classroom;
(iii) twice as likely to commit crime;
(iv) twice as likely to drop out of school;
(v) more likely to commit suicide;
(vi) more than twice as likely to abuse
alcohol or drugs; and
(vii) more likely to become pregnant as
teenagers.
(G) Violent criminals are overwhelmingly males who
grew up without fathers.
(H) Between 20 and 30 percent of families in
poverty are headed by women who have suffered domestic
violence during the past year, and between 40 and 60
percent of women with children receiving welfare were
abused sometime during their life.
(I) Responsible fatherhood includes active
participation in financial support and child care, as
well as the formation and maintenance of a positive,
healthy, and nonviolent relationship between father and
child and a cooperative relationship between parents.
(J) States should be encouraged to implement
programs that provide support for responsible
fatherhood, promote marriage, and increase the
incidence of marriage, and should not be restricted
from implementing such programs.
(K) Fatherhood programs should promote and provide
support services for--
(i) loving and healthy relationships
between parents and children; and
(ii) cooperative parenting.
(L) There is a social need to reconnect children
and fathers.
(M) The promotion of responsible fatherhood and
encouragement of healthy 2-parent married families
should not--
(i) denigrate the standing or parenting
efforts of single mothers or other caregivers;
(ii) lessen the protection of children from
abusive parents; or
(iii) compromise the safety or health of
the custodial parent;
but should increase the chance that children will have
2 caring parents to help them grow up healthy and
secure.
(N) The promotion of responsible fatherhood must
always recognize and promote the values of nonviolence.
(O) For the future of the United States and the
future of our children, Congress, States, and local
communities should assist parents to become more
actively involved in their children's lives.
(P) Child support is an important means by which a
parent can take financial responsibility for a child
and emotional support is an important means by which a
parent can take social responsibility for a child.
(2) Fatherhood program.--Title I of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(Public Law 104-193) is amended by adding at the end the
following:
``SEC. 117. FATHERHOOD PROGRAM.
``(a) In General.--Title IV (42 U.S.C. 601-679b) is amended by
inserting after part B the following:
```PART C--RESPONSIBLE FATHERHOOD PROGRAM
```SEC. 441. RESPONSIBLE FATHERHOOD GRANTS.
```(a) Grants to States To Conduct Demonstration Programs.--
```(1) Authority to award grants.--
```(A) In general.--The Secretary shall award
grants to up to 10 eligible States to conduct
demonstration programs to carry out the purposes
described in paragraph (2).
```(B) Eligible state.--For purposes of this
subsection, an eligible State is a State that submits
to the Secretary the following:
```(i) Application.--An application for a
grant under this subsection, at such time, in
such manner, and containing such information as
the Secretary may require.
```(ii) State plan.--A State plan that
includes the following:
```(I) Project description.--A
description of the programs or
activities the State will fund under
the grant, including a good faith
estimate of the number and
characteristics of clients to be served
under such projects and how the State
intends to achieve at least 2 of the
purposes described in paragraph (2).
```(II) Coordination efforts.--A
description of how the State will
coordinate and cooperate with State and
local entities responsible for carrying
out other programs that relate to the
purposes intended to be achieved under
the demonstration program, including as
appropriate, entities responsible for
carrying out jobs programs and programs
serving children and families.
```(III) Records, reports, and
audits.--An agreement to maintain such
records, submit such reports, and
cooperate with such reviews and audits
as the Secretary finds necessary for
purposes of oversight of the
demonstration program.
```(iii) Certifications.--The following
certifications from the chief executive officer
of the State:
```(I) A certification that the
State will use funds provided under the
grant to promote at least 2 of the
purposes described in paragraph (2).
```(II) A certification that the
State will return any unused funds to
the Secretary in accordance with the
reconciliation process under paragraph
(5).
```(III) A certification that the
funds provided under the grant will be
used for programs and activities that
target low-income participants and that
not less than 50 percent of the
participants in each program or
activity funded under the grant shall
be--
```(aa) parents of a child
who is, or within the past 24
months has been, a recipient of
assistance or services under a
State program funded under part
A, D, or E of this title, title
XIX, or the Food Stamp Act of
1977; or
```(bb) parents, including
an expectant parent or a
married parent, whose income
(after adjustment for court-
ordered child support paid or
received) does not exceed 150
percent of the poverty line.
```(IV) A certification that the
State has or will comply with the
requirements of paragraph (4).
```(V) A certification that funds
provided to a State under this
subsection shall not be used to
supplement or supplant other Federal,
State, or local funds that are used to
support programs or activities that are
related to the purposes described in
paragraph (2).
```(C) Preferences and factors of consideration.--
In awarding grants under this subsection, the Secretary
shall take into consideration the following:
```(i) Diversity of entities used to
conduct programs and activities.--The Secretary
shall, to the extent practicable, achieve a
balance among the eligible States awarded
grants under this subsection with respect to
the size, urban or rural location, and
employment of differing or unique methods of
the entities that the eligible States intend to
use to conduct the programs and activities
funded under the grants.
```(ii) Priority for certain states.--The
Secretary shall give priority to awarding
grants to eligible States that have--
```(I) demonstrated progress in
achieving at least 1 of the purposes
described in paragraph (2) through
previous State initiatives; or
```(II) demonstrated need with
respect to reducing the incidence of
out-of-wedlock births or absent fathers
in the State.
```(2) Purposes.--The purposes described in this paragraph
are the following:
```(A) Promoting responsible fatherhood through
marriage promotion.--To promote marriage or sustain
marriage through activities such as counseling,
mentoring, disseminating information about the benefits
of marriage and 2-parent involvement for children,
enhancing relationship skills, education regarding how
to control aggressive behavior, disseminating
information on the causes of domestic violence and
child abuse, marriage preparation programs, premarital
counseling, marital inventories, skills-based marriage
education, financial planning seminars, including
improving a family's ability to effectively manage
family business affairs by means such as education,
counseling, or mentoring on matters related to family
finances, including household management, budgeting,
banking, and handling of financial transactions and
home maintenance, and divorce education and reduction
programs, including mediation and counseling.
```(B) Promoting responsible fatherhood through
parenting promotion.--To promote responsible parenting
through activities such as counseling, mentoring, and
mediation, disseminating information about good
parenting practices, skills-based parenting education,
encouraging child support payments, and other methods.
```(C) Promoting responsible fatherhood through
fostering economic stability of fathers.--To foster
economic stability by helping fathers improve their
economic status by providing activities such as work
first services, job search, job training, subsidized
employment, job retention, job enhancement, and
encouraging education, including career-advancing
education, dissemination of employment materials,
coordination with existing employment services such as
welfare-to-work programs, referrals to local employment
training initiatives, and other methods.
```(3) Restriction on use of funds.--No funds provided
under this subsection may be used for costs attributable to
court proceedings regarding matters of child visitation or
custody, or for legislative advocacy.
```(4) Requirements for receipt of funds.--A State may not
be awarded a grant under this section unless the State, as a
condition of receiving funds under such a grant--
```(A) consults with experts in domestic violence
or with relevant community domestic violence coalitions
in developing such programs or activities; and
```(B) describes in the application for a grant
under this section--
```(i) how the programs or activities
proposed to be conducted will address, as
appropriate, issues of domestic violence; and
```(ii) what the State will do, to the
extent relevant, to ensure that participation
in such programs or activities is voluntary,
and to inform potential participants that their
involvement is voluntary.
```(5) Reconciliation process.--
```(A) 3-year availability of amounts allotted.--
Each eligible State that receives a grant under this
subsection for a fiscal year shall return to the
Secretary any unused portion of the grant for such
fiscal year not later than the last day of the second
succeeding fiscal year, together with any earnings on
such unused portion.
```(B) Procedure for redistribution.--The Secretary
shall establish an appropriate procedure for
redistributing to eligible States that have expended
the entire amount of a grant made under this subsection
for a fiscal year any amount that is returned to the
Secretary by eligible States under subparagraph (A).
```(6) Amount of grants.--
```(A) In general.--Subject to subparagraph (B),
the amount of each grant awarded under this subsection
shall be an amount sufficient to implement the State
plan submitted under paragraph (1)(B)(ii).
```(B) Minimum amounts.--No eligible State shall--
```(i) in the case of the District of
Columbia or a State other than the Commonwealth
of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands,
receive a grant for a fiscal year in an amount
that is less than $1,000,000; and
```(ii) in the case of the Commonwealth of
Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, receive a grant
for a fiscal year in an amount that is less
than $500,000.
```(7) Definition of state.--In this subsection, the term
`State' means each of the 50 States, the District of Columbia,
the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands.
```(8) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for each of fiscal years 2006 through 2010,
$20,000,000 for purposes of making grants to eligible States
under this subsection.
```(b) Grants to Eligible Entities To Conduct Demonstration
Programs.--
```(1) Authority to award grants.--
```(A) In general.--The Secretary shall award
grants to eligible entities to conduct demonstration
programs to carry out the purposes described in
subsection (a)(2).
```(B) Eligible entity.--For purposes of this
subsection, an eligible entity is a local government,
local public agency, community-based or nonprofit
organization, or private entity, including any
charitable or faith-based organization, or an Indian
tribe or tribal organization (as defined in section
419(4)), that submits to the Secretary the following:
```(i) Application.--An application for a
grant under this subsection, at such time, in
such manner, and containing such information as
the Secretary may require.
```(ii) Project description.--A description
of the programs or activities the entity
intends to carry out with funds provided under
the grant, including a good faith estimate of
the number and characteristics of clients to be
served under such programs or activities and
how the entity intends to achieve at least 2 of
the purposes described in subsection (a)(2).
```(iii) Coordination efforts.--A
description of how the entity will coordinate
and cooperate with State and local entities
responsible for carrying out other programs
that relate to the purposes intended to be
achieved under the demonstration program,
including as appropriate, entities responsible
for carrying out jobs programs and programs
serving children and families.
```(iv) Records, reports, and audits.--An
agreement to maintain such records, submit such
reports, and cooperate with such reviews and
audits as the Secretary finds necessary for
purposes of oversight of the demonstration
program.
```(v) Certifications.--The following
certifications:
```(I) A certification that the
entity will use funds provided under
the grant to promote at least 2 of the
purposes described in subsection
(a)(2).
```(II) A certification that the
entity will return any unused funds to
the Secretary in accordance with the
reconciliation process under paragraph
(3).
```(III) A certification that the
funds provided under the grant will be
used for programs and activities that
target low-income participants and that
not less than 50 percent of the
participants in each program or
activity funded under the grant shall
be--
```(aa) parents of a child
who is, or within the past 24
months has been, a recipient of
assistance or services under a
State program funded under part
A, D, or E of this title, title
XIX, or the Food Stamp Act of
1977; or
```(bb) parents, including
an expectant parent or a
married parent, whose income
(after adjustment for court-
ordered child support paid or
received) does not exceed 150
percent of the poverty line.
```(IV) A certification that the
entity has or will comply with the
requirements of paragraph (3).
```(V) A certification that funds
provided to an entity under this
subsection shall not be used to
supplement or supplant other Federal,
State, or local funds provided to the
entity that are used to support
programs or activities that are related
to the purposes described in subsection
(a)(2).
```(C) Preferences and factors of consideration.--
In awarding grants under this subsection, the Secretary
shall, to the extent practicable, achieve a balance
among the eligible entities awarded grants under this
subsection with respect to the size, urban or rural
location, and employment of differing or unique methods
of the entities.
```(2) Restriction on use of funds.--No funds provided
under this subsection may be used for costs attributable to
court proceedings regarding matters of child visitation or
custody, or for legislative advocacy.
```(3) Requirements for use of funds.--The Secretary may
not award a grant under this subsection to an eligible entity
unless the entity, as a condition of receiving funds under such
a grant--
```(A) consults with experts in domestic violence
or with relevant community domestic violence coalitions
in developing the programs or activities to be
conducted with such funds awarded under the grant; and
```(B) describes in the application for a grant
under this section--
```(i) how the programs or activities
proposed to be conducted will address, as
appropriate, issues of domestic violence; and
```(ii) what the entity will do, to the
extent relevant, to ensure that participation
in such programs or activities is voluntary,
and to inform potential participants that their
involvement is voluntary.
```(4) Reconciliation process.--
```(A) 3-year availability of amounts allotted.--
Each eligible entity that receives a grant under this
subsection for a fiscal year shall return to the
Secretary any unused portion of the grant for such
fiscal year not later than the last day of the second
succeeding fiscal year, together with any earnings on
such unused portion.
```(B) Procedure for redistribution.--The Secretary
shall establish an appropriate procedure for
redistributing to eligible entities that have expended
the entire amount of a grant made under this subsection
for a fiscal year any amount that is returned to the
Secretary by eligible entities under subparagraph (A).
```(5) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for each of fiscal years 2006 through 2010,
$30,000,000 for purposes of making grants to eligible entities
under this subsection.
```SEC. 442. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD
PROGRAMS.
```(a) Media Campaign National Clearinghouse for Responsible
Fatherhood.--
```(1) In general.--From any funds appropriated under
subsection (c), the Secretary shall contract with a nationally
recognized, nonprofit fatherhood promotion organization
described in subsection (b) to--
```(A) develop, promote, and distribute to
interested States, local governments, public agencies,
and private entities a media campaign that encourages
the appropriate involvement of parents in the life of
any child, with a priority for programs that
specifically address the issue of responsible
fatherhood; and
```(B) develop a national clearinghouse to assist
States and communities in efforts to promote and
support marriage and responsible fatherhood by
collecting, evaluating, and making available (through
the Internet and by other means) to other States
information regarding the media campaigns established
under section 443.
```(2) Coordination with domestic violence programs.--The
Secretary shall ensure that the nationally recognized nonprofit
fatherhood promotion organization with a contract under
paragraph (1) coordinates the media campaign developed under
subparagraph (A) of such paragraph and the national
clearinghouse developed under subparagraph (B) of such
paragraph with national, State, or local domestic violence
programs.
```(b) Nationally Recognized, Nonprofit Fatherhood Promotion
Organization Described.--The nationally recognized, nonprofit
fatherhood promotion organization described in this subsection is an
organization that has at least 4 years of experience in--
```(1) designing and disseminating a national public
education campaign, as evidenced by the production and
successful placement of television, radio, and print public
service announcements that promote the importance of
responsible fatherhood, a track record of service to Spanish-
speaking populations and historically underserved or minority
populations, the capacity to fulfill requests for information
and a proven history of fulfilling such requests, and a
mechanism through which the public can request additional
information about the campaign; and
```(2) providing consultation and training to community-
based organizations interested in implementing fatherhood
outreach, support, or skill development programs with an
emphasis on promoting married fatherhood as the ideal.
```(c) Authorization of Appropriations.--There is authorized to be
appropriated $5,000,000 for each of fiscal years 2006 through 2010 to
carry out this section.
```SEC. 443. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.
```(a) Definitions.--In this section:
```(1) Broadcast advertisement.--The term `broadcast
advertisement' means a communication intended to be aired by a
television or radio broadcast station, including a
communication intended to be transmitted through a cable
channel.
```(2) Child at risk.--The term `child at risk' means each
young child whose family income does not exceed the poverty
line.
```(3) Poverty line.--The term `poverty line' has the
meaning given such term in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)), including any
revision required by such section, that is applicable to a
family of the size involved.
```(4) Printed or other advertisement.--The term `printed
or other advertisement' includes any communication intended to
be distributed through a newspaper, magazine, outdoor
advertising facility, mailing, or any other type of general
public advertising, but does not include any broadcast
advertisement.
```(5) State.--The term `State' means each of the 50
States, the District of Columbia, the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American Samoa,
and the Commonwealth of the Northern Mariana Islands.
```(6) Young child.--The term `young child' means an
individual under age 5.
```(b) State Certifications.--Not later than October 1 of each of
fiscal year for which a State desires to receive an allotment under
this section, the chief executive officer of the State shall submit to
the Secretary a certification that the State shall--
```(1) use such funds to promote the formation and
maintenance of healthy 2-parent married families, strengthen
fragile families, and promote responsible fatherhood through
media campaigns conducted in accordance with the requirements
of subsection (d);
```(2) return any unused funds to the Secretary in
accordance with the reconciliation process under subsection
(e); and
```(3) comply with the reporting requirements under
subsection (f).
```(c) Payments to States.--For each of fiscal years 2006 through
2010, the Secretary shall pay to each State that submits a
certification under subsection (b), from any funds appropriated under
subsection (i), for the fiscal year an amount equal to the amount of
the allotment determined for the fiscal year under subsection (g).
```(d) Establishment of Media Campaigns.--Each State receiving an
allotment under this section for a fiscal year shall use the allotment
to conduct media campaigns as follows:
```(1) Conduct of media campaigns.--
```(A) Radio and television media campaigns.--
```(i) Production of broadcast
advertisements.--At the option of the State, to
produce broadcast advertisements that promote
the formation and maintenance of healthy 2-
parent married families, strengthen fragile
families, and promote responsible fatherhood.
```(ii) Airtime challenge program.--At the
option of the State, to establish an airtime
challenge program under which the State may
spend amounts allotted under this section to
purchase time from a broadcast station to air a
broadcast advertisement produced under clause
(i), but only if the State obtains an amount of
time of the same class and during a comparable
period to air the advertisement using non-
Federal contributions.
```(B) Other media campaigns.--At the option of the
State, to conduct a media campaign that consists of the
production and distribution of printed or other
advertisements that promote the formation and
maintenance of healthy 2-parent married families,
strengthen fragile families, and promote responsible
fatherhood.
```(2) Administration of media campaigns.--A State may
administer media campaigns funded under this section directly
or through grants, contracts, or cooperative agreements with
public agencies, local governments, or private entities,
including charitable and faith-based organizations.
```(3) Consultation with domestic violence assistance
centers.--In developing broadcast and printed advertisements to
be used in the media campaigns conducted under paragraph (1),
the State or other entity administering the campaign shall
consult with representatives of State and local domestic
violence centers.
```(4) Non-federal contributions.--In this section, the
term `non-Federal contributions' includes contributions by the
State and by public and private entities. Such contributions
may be in cash or in kind. Such term does not include any
amounts provided by the Federal Government, or services
assisted or subsidized to any significant extent by the Federal
Government, or any amount expended by a State before October 1,
2005.
```(e) Reconciliation Process.--
```(1) 3-year availability of amounts allotted.--Each State
that receives an allotment under this section shall return to
the Secretary any unused portion of the amount allotted to a
State for a fiscal year not later than the last day of the
second succeeding fiscal year together with any earnings on
such unused portion.
```(2) Procedure for redistribution of unused allotments.--
The Secretary shall establish an appropriate procedure for
redistributing to States that have expended the entire amount
allotted under this section any amount that is--
```(A) returned to the Secretary by States under
paragraph (1); or
```(B) not allotted to a State under this section
because the State did not submit a certification under
subsection (b) by October 1 of a fiscal year.
```(f) Reporting Requirements.--
```(1) Monitoring and evaluation.--Each State receiving an
allotment under this section for a fiscal year shall monitor
and evaluate the media campaigns conducted using funds made
available under this section in such manner as the Secretary,
in consultation with the States, determines appropriate.
```(2) Annual reports.--Not less frequently than annually,
each State receiving an allotment under this section for a
fiscal year shall submit to the Secretary reports on the media
campaigns conducted using funds made available under this
section at such time, in such manner, and containing such
information as the Secretary may require.
```(g) Amount of Allotments.--
```(1) In general.--Except as provided in paragraph (2), of
the amount appropriated for the purpose of making allotments
under this section for a fiscal year, the Secretary shall allot
to each State that submits a certification under subsection (b)
for the fiscal year an amount equal to the sum of--
```(A) the amount that bears the same ratio to 50
percent of such funds as the number of young children
in the State (as determined by the Secretary based on
the most current reliable data available) bears to the
number of such children in all States; and
```(B) the amount that bears the same ratio to 50
percent of such funds as the number of children at risk
in the State (as determined by the Secretary based on
the most current reliable data available) bears to the
number of such children in all States.
```(2) Minimum allotments.--No allotment for a fiscal year
under this section shall be less than--
```(A) in the case of the District of Columbia or a
State other than the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands, 1
percent of the amount appropriated for the fiscal year
under subsection (i); and
```(B) in the case of the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands, 0.5 percent of such amount.
```(3) Pro rata reductions.--The Secretary shall make such
pro rata reductions to the allotments determined under this
subsection as are necessary to comply with the requirements of
paragraph (2).
```(h) Evaluation.--
```(1) In general.--The Secretary shall conduct an
evaluation of the impact of the media campaigns funded under
this section.
```(2) Report.--Not later than December 31, 2008, the
Secretary shall report to Congress the results of the
evaluation under paragraph (1).
```(3) Funding.--Of the amount appropriated under
subsection (i) for fiscal year 2006, $1,000,000 of such amount
shall be transferred and made available for purposes of
conducting the evaluation required under this subsection, and
shall remain available until expended.
```(i) Authorization of Appropriations.--There is authorized to be
appropriated $20,000,000 for each of fiscal years 2006 through 2010 for
purposes of making allotments to States under this section.
```SEC. 444. NATIONAL RESOURCE CENTER FOR RESPONSIBLE FATHERHOOD
```(a) In General.--The Secretary shall contract with a nationally
recognized, nonprofit research and education fatherhood organization
described in subsection (b) to--
```(1) provide technical assistance and training to public
and private agencies and grass roots organizations that promote
responsible fatherhood and healthy marriage; and
```(2) develop a clearinghouse of resource materials to
assist community-based organizations in developing local
responsible fatherhood programs, with an emphasis on training
and outcome evaluation.
```(b) Nationally Recognized Nonprofit Research and Education
Fatherhood Organization Described.--A nationally recognized nonprofit
research and education fatherhood organization described in this
subsection is an organization that has been in existence for at least
12 years with experience in--
```(1) developing and distributing research-based
curriculum that promotes responsible fatherhood and healthy
marriage with an emphasis on low-income and noncustodial
fathers;
```(2) providing consultation and training to community-
based organizations with a track record of working with social
service, government, and faith-based organizations; and
```(3) providing direct training to fathers, father
figures, and mothers using research-based curriculum in a
variety of economic, cultural and family situations.
```(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section, $1,000,000 for
each of fiscal years 2006 through 2010.
```SEC. 445. NONDISCRIMINATION.
```The projects and activities assisted under this part shall be
available on the same basis to all fathers and expectant fathers able
to benefit from such projects and activities, including married and
unmarried fathers and custodial and noncustodial fathers, with
particular attention to low-income fathers, and to mothers and
expectant mothers on the same basis as to fathers.'.
``(b) Inapplicability of Effective Date Provisions.--Section 116
shall not apply to the amendment made by subsection (a) of this
section.''.
(b) Clerical Amendment.--Section 2 of such Act is amended in the
table of contents by inserting after the item relating to section 116
the following new item:
``Sec. 117. Responsible fatherhood program.''.
SEC. 119. ADDITIONAL GRANTS.
(a) Grants To Capitalize and Develop Sustainable Social Services.--
Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end the
following:
``(6) Grants to capitalize and develop sustainable social
services.--
``(A) Authority to award grants.--The Secretary may
award grants to entities for the purpose of
capitalizing and developing the role of sustainable
social services that are critical to the success of
moving recipients of assistance under a State program
funded under this part to work.
``(B) Application.--
``(i) In general.--An entity desiring a
grant under this paragraph shall submit an
application to the Secretary, at such time, in
such manner, and, subject to clause (ii),
containing such information as the Secretary
may require.
``(ii) Strategy for generation of
revenue.--An application for a grant under this
paragraph shall include a description of the
capitalization strategy that the entity intends
to follow to develop a program that generates
its own source of ongoing revenue while
assisting recipients of assistance under a
State program funded under this part.
``(C) Use of funds.--
``(i) In general.--Funds made available
under a grant made under this paragraph may be
used for the acquisition, construction, or
renovation of facilities or buildings.
``(ii) General rules governing use of
funds.--The rules of section 404, other than
subsection (b) of that section, shall not apply
to a grant made under this paragraph.
``(D) Evaluation and report.--The Secretary shall,
by grant, contract, or interagency agreement, conduct
an evaluation of the programs developed with grants
awarded under this paragraph and shall submit a report
to Congress on the results of such evaluation.
``(E) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary for the
purpose of carrying out this paragraph, $40,000,000 for
each of fiscal years 2006 through 2010.''.
(b) Grants for Low-Income Car Ownership Programs.--Section 403(a)
(42 U.S.C. 603(a)), as amended by subsection (a), is further amended by
adding at the end the following:
``(7) Grants for low-income car ownership programs.--
``(A) Purposes.--The purposes of this paragraph are
to--
``(i) assist low-income families with
children obtain dependable, affordable
automobiles to improve their employment
opportunities and access to training; and
``(ii) provide incentives to States, Indian
tribes or tribal organizations, localities, and
nonprofit entities to develop and administer
programs that provide assistance with
automobile ownership for low-income families.
``(B) Definitions.--In this paragraph:
``(i) Locality.--The term `locality' means
a municipality that does not administer a State
program funded under this part.
``(ii) Low-income family with children.--
The term `low-income family with children'
means a household that is eligible for benefits
or services funded under the State program
funded under this part or under a program
funded with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)).
``(iii) Nonprofit entity.--The term
`nonprofit entity' means a school, local
agency, organization, or institution owned and
operated by 1 or more nonprofit corporations or
associations, no part of the net earnings of
which inures, or may lawfully inure, to the
benefit of any private shareholder or
individual.
``(C) Authority to award grants.--The Secretary may
award grants to States, counties, localities, Indian
tribes or tribal organizations, and nonprofit entities
to promote improving access to dependable, affordable
automobiles by low-income families with children.
``(D) Grant approval criteria.--The Secretary shall
establish criteria for approval of an application for a
grant under this paragraph that include consideration
of--
``(i) the extent to which the proposal, if
funded, is likely to improve access to training
and employment opportunities and child care
services by low-income families with children
by means of car ownership;
``(ii) the level of innovation in the
applicant's grant proposal; and
``(iii) any partnerships between the public
and private sector in the applicant's grant
proposal.
``(E) Use of funds.--
``(i) In general.--A grant awarded under
this paragraph shall be used to administer
programs that assist low-income families with
children with dependable automobile ownership,
and maintenance of, or insurance for, the
purchased automobile.
``(ii) Supplement not supplant.--Funds
provided to a State, Indian tribe or tribal
organization, county, or locality under a grant
awarded under this paragraph shall be used to
supplement and not supplant other State,
county, or local public funds expended for car
ownership programs.
``(iii) General rules governing use of
funds.--The rules of section 404, other than
subsection (b) of that section, shall not apply
to a grant made under this paragraph.
``(F) Application.--Each applicant desiring a grant
under this paragraph shall submit an application to the
Secretary at such time, in such manner, and accompanied
by such information as the Secretary may reasonably
require.
``(G) Reversion of funds.--Any funds not expended
by a grantee within 3 years after the date the grant is
awarded under this paragraph shall be available for
redistribution among other grantees in such manner and
amount as the Secretary may determine, unless the
Secretary extends by regulation the time period to
expend such funds.
``(H) Limitation on administrative costs of the
secretary.--Not more than an amount equal to 5 percent
of the funds appropriated to make grants under this
paragraph for a fiscal year shall be expended for
administrative costs of the Secretary in carrying out
this paragraph.
``(I) Evaluation.--The Secretary shall, by grant,
contract, or interagency agreement, conduct an
evaluation of the programs administered with grants
awarded under this paragraph.
``(J) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary to make
grants under this paragraph, $25,000,000 for each of
fiscal years 2006 through 2010.''.
(c) Transitional Jobs Grants.--
(1) In general.--Section 403(a) (42 U.S.C. 603(a)), as
amended by subsection (b), is further amended by adding at the
end the following:
``(8) Innovative business link partnership grants.--
``(A) In general.--The Secretary and the Secretary
of Labor (in this paragraph referred to as the
`Secretaries') jointly shall award grants in accordance
with this paragraph for projects proposed by eligible
applicants based on the following:
``(i) The potential effectiveness of the
proposed project in carrying out the activities
described in subparagraph (E).
``(ii) Evidence of the ability of the
eligible applicant to leverage private, State,
or local resources.
``(iii) Evidence of the ability of the
eligible applicant to coordinate with other
organizations at the State or local level.
``(B) Definition of eligible applicant.--
``(i) In general.--In this paragraph, the
term `eligible applicant' means a private
organization, a local workforce investment
board established under section 117 of the
Workforce Investment Act of 1998 (29 U.S.C.
2832), a State, a political subdivision of a
State, or an Indian tribe or tribal
organization.
``(ii) Grants to promote business
linkages.--
``(I) Additional eligible
applicant.--Only for purposes of grants
to carry out the activities described
in subparagraph (E)(i), the term
`eligible applicant' includes an
employer.
``(II) Additional requirement.--In
order to qualify as an eligible
applicant for purposes of subparagraph
(E)(i), the applicant must demonstrate
that the application has been developed
by and will be implemented by a local
or regional consortium that includes,
at minimum, employers or employer
associations, and education and
training providers, in consultation
with local labor organizations and
social service providers that work with
low-income families or individuals with
disabilities.
``(C) Requirements.--
``(i) In general.--In awarding grants under
this paragraph, the Secretaries shall--
``(I) consider the needs of rural
areas and cities with large
concentrations of residents with an
income that is less than 150 percent of
the poverty line; and
``(II) ensure that--
``(aa) all of the funds
made available under this
paragraph (other than funds
reserved for use by the
Secretaries under subparagraph
(J)) shall be used for
activities described in
subparagraph (E);
``(bb) not less than 40
percent of the funds made
available under this paragraph
(other than funds so reserved)
shall be used for activities
described in subparagraph
(E)(i); and
``(cc) not less than 40
percent of the funds made
available under this paragraph
(other than funds so reserved)
shall be used for the
activities described in
subparagraph (E)(ii).
``(ii) Continuation of availability.--If
any portion of the funds required to be used
for activities referred to in item (bb) or (cc)
of clause (i)(II) are not awarded in a fiscal
year, such portion shall continue to be
available in the subsequent fiscal year for the
same activity, in addition to other amounts
that may be available for such activities for
that subsequent fiscal year.
``(D) Determination of grant amount.--
``(i) In general.--Subject to clause (ii),
in determining the amount of a grant to be
awarded under this paragraph for a project
proposed by an eligible applicant, the
Secretaries shall take into account--
``(I) the number and
characteristics of the individuals to
be served by the project;
``(II) the level of unemployment in
the area to be served by the project;
``(III) the job opportunities and
job growth in such area;
``(IV) the poverty rate for such
area; and
``(V) such other factors as the
Secretary deems appropriate in such
area.
``(ii) Maximum award for grants to promote
business linkages or provide transitional jobs
programs.--
``(I) In general.--In the case of a
grant to carry out activities described
in clause (i) or (ii) of subparagraph
(E), an eligible applicant awarded a
grant under this paragraph may not
receive more than $10,000,000 per
fiscal year under the grant.
``(II) Rule of construction.--
Nothing in subclause (I) shall be
construed as precluding an otherwise
eligible applicant from receiving
separate grants to carry out activities
described in clause (i) or (ii) of
subparagraph (E).
``(iii) Grant period.--The period in which
a grant awarded under this paragraph may be
used shall be specified for a period of not
less than 36 months and not more than 60
months.
``(E) Allowable activities.--An eligible applicant
awarded a grant under this paragraph shall use funds
provided under the grant to do the following:
``(i) Promote business linkages.--
``(I) In general.--To promote
business linkages in which funds shall
be used to fund new or expanded
programs that are designed to--
``(aa) substantially
increase the wages of eligible
individuals (as defined in
subparagraph (F)), whether
employed or unemployed, who
have limited English
proficiency or other barriers
to employment by creating or
upgrading job and related
skills in partnership with
employers, especially by
providing supports and services
at or near worksites; and
``(bb) identify and
strengthen career pathways by
expanding and linking work and
training opportunities for such
individuals in collaboration
with employers.
``(II) Consideration of in-kind,
in-cash resources.--In determining
which programs to fund under this
clause, an eligible applicant awarded a
grant under this paragraph shall
consider the ability of a consortium to
provide funds in-kind or in-cash
(including employer-provided, paid
release time) to help support the
programs for which funding is sought.
``(III) Priority.--In determining
which programs to fund under this
clause, an eligible applicant awarded a
grant under this paragraph shall give
priority to programs that include
education or training for which
participants receive credit toward a
recognized credential, such as an
occupational certificate or license.
``(IV) Use of funds.--
``(aa) In general.--Funds
provided to a program under
this clause may be used for a
comprehensive set of employment
and training benefits and
services, including job
development, job placement,
workplace supports and
accommodations, curricula
development, wage subsidies,
retention services, and such
other benefits or services as
the program deems necessary to
achieve the overall objectives
of this clause.
``(bb) Provision of
services.--So long as a program
is principally designed to
assist eligible individuals (as
defined in subparagraph (F)),
funds may be provided to a
program under this clause that
also serves low-earning
employees of 1 or more
employers even if such
individuals are not within the
definition of eligible
individual (as so defined).
``(ii) Provide for transitional jobs
programs.--
``(I) In general.--To provide for
wage-paying transitional jobs programs
which combine time-limited employment
in the public or nonprofit private
sector that is subsidized with public
funds with skill development and
activities to remove barriers to
employment, pursuant to an
individualized plan (or, in the case of
an eligible individual described in
subparagraph (F)(i), an individual
responsibility plan developed for an
individual under section 408(b)). Such
programs also shall provide job
development and placement assistance to
individual participants to help them
move from subsidized employment in
transitional jobs into unsubsidized
employment, as well as retention
services after the transition to
unsubsidized employment.
``(II) Eligible participants.--The
Secretary shall ensure that individuals
who participate in transitional jobs
programs funded under a grant made
under this paragraph shall be
individuals who have been unemployed
because of limited skills, experience,
or other barriers to employment, and
who are eligible individuals (as
defined in subparagraph (F)), provided
that so long as a program is designed
to, and principally serves, eligible
individuals (as so defined), a limited
number of individuals who are
unemployed because of limited skills,
experience, or other barriers to
employment, and who have an income
below 100 percent of the Federal
poverty line but who do not satisfy the
definition of eligible individual (as
so defined) may be served in the
program to the extent the Secretaries
determine that the inclusion of such
individuals in the program is
appropriate.
``(III) Use of funds.--Funds
provided to a program under this clause
may only be used in accordance with the
following:
``(aa) To create subsidized
transitional jobs in which work
shall be performed directly for
the program operator or at
other public and nonprofit
organizations (in this
subclause referred to as
`worksite employers') in the
community, and in which 100
percent of the wages shall be
subsidized, except as described
in item (ff) regarding
placements in the private, for-
profit sector.
``(bb) Participants shall
be paid at the rate paid to
unsubsidized employees of the
worksite employer who perform
comparable work at the worksite
where the individual is placed.
If no other employees perform
the same or comparable work
then wages shall be set, at a
minimum, at 50 percent of the
Lower Living Standard Income
Level (commonly referred to as
the `LLSIL'), as determined
under section 101(24) of the
Workforce Investment Act of
1998 (29 U.S.C. 2801(24)), for
a family of 3 based on 35 hours
per week.
``(cc) Transitional jobs
shall be limited to not less
than 6 months and not more than
24 months, however, nothing
shall preclude a participant
from moving into unsubsidized
employment at a point prior to
the maximum duration of the
transitional job placement.
Participants shall be paid
wages based on a workweek of
not less than 30 hours per week
or more than 40 hours per week,
except that a parent of a child
under the age of 6, a child who
is disabled, or a child with
other special needs, or an
individual who for other
reasons cannot successfully
participate for 30 to 40 hours
per week, may be allowed to
participate for more limited
hours, but not less than 20
hours per week. In any work
week, 50 percent to 80 percent
of hours shall be spent in the
transitional job and 20 percent
to 50 percent of hours shall be
spent in education or training,
or other services designed to
reduce or eliminate any
barriers.
``(dd) Program operators
shall provide case management
services and ensure access to
appropriate education,
training, and other services,
including job accommodation,
work supports, and supported
employment, as appropriate and
consistent with an individual
employment plan (unless the
individual already has an
employment plan developed by
the appropriate State agency
with responsibility for the
administration of the State
program funded under this part
or the State workforce
investment board established
under section 111 of the
Workforce Investment Act of
1998 (29 U.S.C. 2821)) that is
based on the individual's
strengths, resources,
priorities, concerns,
abilities, capabilities, career
interests, and informed choice
and that is developed with each
participant. The goal of each
participant's plan shall focus
on preparation for unsubsidized
jobs in demand in the local
economy which offer the
potential for advancement and
growth. Services shall also
include job placement
assistance and retention
services for 12 months after
entry into unsubsidized
placement. Participants shall
also receive support services
such as subsidized child care
and transportation, on the same
basis as those services are
made available to recipients of
assistance under the State
program funded under this part
who are engaged in work-related
activities.
``(ee) Providers shall work
with individual recipients to
determine eligibility for other
employment-related supports
which may include (but are not
limited to) supported
employment, other vocational
rehabilitation services, and
programs or services available
under the Workforce Investment
Act of 1998 (29 U.S.C. 2801 et
seq.), or the ticket to work
and self-sufficiency program
established under section 1148,
and, to the extent possible,
shall provide transitional
employment in collaboration
with entities providing, or
arranging for the provision of,
such other supports.
``(ff) Not more than \1/3\
of the placements for a grantee
shall be with a private for-
profit company, except that
such \1/3\ limit may be waived
by the Secretary for programs
in rural areas when the grantee
can demonstrate insufficient
public and non-profit
worksites. When a placement is
made at a private for-profit
company, the company shall pay
50 percent of program costs
(including wages) for each
participant, and the company
shall agree, in writing, to
hire each participant into an
unsubsidized position at the
completion of the agreed upon
subsidized placement, or
sooner, provided that the
participant's job performance
has been satisfactory.
``(gg) Subject to item
(hh), not more than 15 percent
of the workforce of a private
for-profit company may be
composed of transitional jobs
participants.
``(hh) Notwithstanding item
(gg), no employer shall be
precluded from employing up to
2 transitional jobs
participants.
``(IV) Definition of transitional
jobs program.--In this clause, the term
`transitional jobs program' means a
program that is intended to serve
current and former recipients of
assistance under a State or tribal
program funded under this part and
other low-income individuals who have
been unable to secure employment
through job search or other employment-
related services because of limited
skills, experience, or other barriers
to employment.
``(iii) Limitation on administrative
expenditures.--Not more than 5 percent of the
funds awarded to an eligible applicant under
clause (i) or (ii) may be used for
administrative expenditures incurred in
carrying out the activities described in clause
(i) or (ii) or for expenditures related to
carrying out the assessments and reports
required under subparagraph (H).
``(F) Definition of eligible individual.--In this
paragraph, the term `eligible individual' means--
``(i) an individual who is a parent who is
a recipient of assistance under a State or
tribal program funded under this part;
``(ii) an individual who is a parent who
has ceased to receive assistance under such a
State or tribal program;
``(iii) an individual who is at risk of
receiving assistance under a State or tribal
program funded under this part;
``(iv) an individual with a disability; or
``(v) a noncustodial parent who is
unemployed, or is having difficulty in paying
child support obligations, including such a
parent who is a former criminal offender.
``(G) Application.--Each eligible applicant
desiring a grant under this paragraph shall submit an
application to the Secretaries at such time, in such
manner, and accompanied by such information as the
Secretaries may require.
``(H) Assessments and reports by grantees.--
``(i) In general.--An eligible applicant
that receives a grant under this paragraph
shall assess and report on the outcomes of
programs funded under the grant, including the
identity of each program operator, demographic
information about each participant, including
education level, literacy level, prior work
experience and identified barriers to
employment, the nature of education, training,
or other services received by the participant,
the reason for the participant's leaving the
program, and outcomes related to the placement
of the participant in an unsubsidized job,
including 1-year employment retention, wage at
placement, benefits, and earnings progression,
as specified by the Secretaries.
``(ii) Assistance.--The Secretaries shall--
``(I) assist grantees in conducting
the assessment required under clause
(i) by making available where
practicable low-cost means of tracking
the labor market outcomes of
participants; and
``(II) encourage States to provide
such assistance.
``(I) Application to requirements of the state
program.--
``(i) Participation not considered
assistance.--A benefit or service provided with
funds made available under a grant made under
this paragraph shall not be considered
assistance for any purpose under a State or
tribal program funded under this part.
``(ii) General rules governing use of
funds.--The rules of section 404, other than
subsection (b) of that section, shall not apply
to a grant made under this paragraph.
``(J) Assessments by the secretaries.--
``(i) Reservation of funds.--Of the amount
appropriated to carry out this paragraph for
each of fiscal years 2006 and 2007, $3,000,000
of such amount for each such fiscal year is
reserved for use by the Secretaries to prepare
an interim and final report summarizing and
synthesizing outcomes and lessons learned from
the programs funded through grants awarded
under this paragraph.
``(ii) Interim and final assessments.--With
respect to the reports prepared under clause
(i), the Secretaries shall submit--
``(I) the interim report not later
than 4 years after the date of
enactment of the Personal
Responsibility and Individual
Development for Everyone Act; and
``(II) the final report not later
than 6 years after such date of
enactment.
``(K) Evaluations.--
``(i) Reservation of funds.--Of the amount
appropriated to carry out this paragraph for a
fiscal year, an amount equal to 1.5 percent of
such amount for each such fiscal year shall be
reserved for use by the Secretaries to conduct
evaluations in accordance with the requirements
of clause (ii).
``(ii) Requirements.--The Secretaries--
``(I) shall develop a plan to
evaluate the extent to which programs
funded under grants made under this
paragraph have been effective in
promoting sustained, unsubsidized
employment for each group of eligible
participants, and in improving the
skills and wages of participants in
comparison to the participants' skills
and wages prior to participation in the
programs;
``(II) may evaluate the use of such
a grant by a grantee, as the
Secretaries deem appropriate, in
accordance with an agreement entered
into with the grantee after good-faith
negotiations; and
``(III) shall include, as
appropriate, the following outcome
measures in the evaluation plan
developed under subclause (I):
``(aa) Placements in
unsubsidized employment.
``(bb) Retention in
unsubsidized employment 6
months and 12 months after
initial placement.
``(cc) Earnings of
individuals at the time of
placement in unsubsidized
employment.
``(dd) Earnings of
individuals 12 months after
placement in unsubsidized
employment.
``(ee) The extent to which
unsubsidized job placements
include access to affordable
employer-sponsored health
insurance and paid leave
benefits.
``(ff) Comparison of pre-
and post-program wage rates of
participants.
``(gg) Comparison of pre-
and post-program skill levels
of participants.
``(hh) Wage growth and
employment retention in
relation to occupations and
industries at initial placement
in unsubsidized employment and
over the first 12 months after
initial placement.
``(ii) Recipient of cash
assistance under the State
program funded under this part.
``(jj) Average expenditures
per participant.
``(iii) Reports to congress.--The
Secretaries shall submit to Congress the
following reports on the evaluations of
programs funded under grants made under this
paragraph:
``(I) Interim report.--An interim
report not later than 4 years after the
date of enactment of the Personal
Responsibility and Individual
Development for Everyone Act.
``(II) Final report.--A final
report not later than 6 years after
such date of enactment.
``(L) Authorization of appropriations.--
``(i) In general.--There is authorized to
be appropriated for the purpose of carrying out
this paragraph, $200,000,000 for each of fiscal
years 2006 through 2010.
``(ii) Availability.--Amounts appropriated
in accordance with clause (i) for a fiscal year
shall remain available for obligation for 5
fiscal years after the fiscal year in which the
amount is appropriated.''.
(2) Nondisplacement in work activities.--Section 407(f) (42
U.S.C. 607(f)) is amended to read as follows:
``(f) Nondisplacement.--
``(1) In general.--An adult in a family receiving
assistance under a State program funded under this part, in
order to engage in a work activity, shall not displace any
employee or position (including partial displacement, such as a
reduction in the hours of nonovertime work, wages, or
employment benefits), fill any unfilled vacancy, or perform
work when any individual is on layoff from the same or
substantially equivalent job.
``(2) Prohibitions.--A work activity engaged in under a
program operated with funds provided under this part shall not
impair any existing contract for services, be inconsistent with
any existing law, regulation, or collective bargaining
agreement, or infringe upon the recall rights or promotional
opportunities of any worker.
``(3) No supplanting of other hires.--A work activity
engaged in under a program operated with funds provided under
this part shall be in addition to any activity that otherwise
would be available and shall not supplant the hiring of an
employed worker not funded under such program.
``(4) Enforcing antidisplacement protections.--
``(A) In general.--The State shall establish and
maintain an impartial grievance procedure, which shall
include the opportunity for a hearing, to resolve any
complaints alleging violations of the requirements of
paragraph (1), (2), or (3) within 60 days of receipt of
the complaint and, if a decision is adverse to the
party who filed such grievance or no decision has been
reached, provide for the completion of an arbitration
procedure within 75 days of receipt of the complaint or
the adverse decision or conclusion of the 60-day
period, whichever is earlier.
``(B) Appeals.--Appeals may be made to the
Secretary who shall make a decision within 75 days of
receipt of an appeal.
``(C) Remedies.--Remedies for a violation of the
requirements of paragraph (1), (2), or (3) shall
include--
``(i) suspension or termination of payments
from funds provided under this part;
``(ii) prohibition of placement of a
participant with an employer that has violated
paragraph (1), (2), or (3);
``(iii) where applicable, reinstatement of
an employee, payment of lost wages and
benefits, and reestablishment of other relevant
terms, conditions and privileges of employment;
and
``(iv) where appropriate, other equitable
relief.
``(D) Limitation on placement.--If a grievance is
filed regarding a proposed placement of a participant,
such placement shall not be made unless such placement
is consistent with the resolution of the grievance
pursuant to this paragraph.
``(E) Non-exclusive procedures.--The grievance
procedures specified in this paragraph are not
exclusive, and an aggrieved employee or participant in
a program funded under a grant made under this part may
pursue other remedies or procedures available under
applicable contracts, collective bargaining agreements,
or Federal, State, or local laws.
``(E) No preemption.--The provisions of this
subsection shall not be construed to preempt any
provision of State or local law that affords greater
protections to employees or to other participants
engaged in work activities under a program funded under
this part than is afforded by the provisions of this
subsection.''.
(d) Teen Pregnancy Prevention Resource Center.--Section 413 (42
U.S.C. 613), as amended by section 114(f), is amended by adding at the
end the following:
``(q) Teen Pregnancy Prevention Resource Center.--
``(1) Authority.--
``(A) In general.--The Secretary shall make a grant
to 1 nationally recognized, nonpartisan, nonprofit
organization that meets the requirements described in
subparagraph (B) to establish and operate a national
teen pregnancy prevention resource center (in this
subsection referred to as the `Resource Center') to
carry out the purposes and activities described in
paragraph (2).
``(B) Requirements.--The requirements described in
this subparagraph are the following:
``(i) The organization focuses exclusively
on preventing teen pregnancy and has at least 9
years of experience in working with diverse
sectors of society to reduce teen pregnancy.
``(ii) The organization has a demonstrated
ability to work with, and provide assistance
to, a broad range of individuals and entities
with a variety of perspectives, including teens
and youth leaders, parents, the entertainment
and news media, State, tribal, and local
organizations, networks of teen pregnancy
prevention practitioners, businesses, faith and
community leaders, and researchers.
``(iii) The organization is research-based
and has capabilities in scientific analysis and
evaluation.
``(iv) The organization has comprehensive
knowledge and data about teen pregnancy
prevention strategies.
``(v) The organization has experience
carrying out activities similar to the
activities described in paragraph (2)(B).
``(2) Purposes and activities.--
``(A) Purposes.--The purposes of the Resource
Center are to improve the well-being of children and
families and encourage young people to delay pregnancy
until marriage. Specifically, the Resource Center
shall--
``(i) provide information and technical
assistance to States, Indian tribes, local
communities, and other public or private
organizations seeking to reduce rates of teen
pregnancy;
``(ii) support parents in their essential
role in preventing teen pregnancy by equipping
them with information and resources to promote
and strengthen communication with their
children about sex, values, and positive
relationships, including healthy marriage; and
``(iii) assist the entertainment media
industry by providing information and
encouraging the industry to develop content and
messages for teens and adults that can help
prevent teen pregnancy.
``(B) Activities.--The Resource Center shall carry
out the purposes described in subparagraph (A) through
the following activities:
``(i) Synthesizing and disseminating
research and information regarding effective
and promising practices, and providing
information on how to design and implement
effective strategies to prevent teen pregnancy.
``(ii) Providing information and reaching
out to diverse populations, with particular
attention to areas and populations with the
highest rates of teen pregnancy.
``(iii) Helping States, local communities,
and other organizations increase their
knowledge of existing resources that can be
used to advance teen pregnancy prevention
efforts, and build their capacity to access
such resources and develop partnerships with
other programs and funding streams.
``(iv) Raising awareness of the importance
of increasing the proportion of children born
to, and raised in, healthy, adult marriages.
``(v) Linking organizations working to
reduce teen pregnancy with experts and peers,
including the creation of technical assistance
networks that use cost-effective and efficient
communication tools (such as the Internet).
``(vi) Providing consultation and resources
about how to reduce teen pregnancy to various
sectors of society including parents, other
adults (such as teachers, coaches, and
mentors), community and faith-based groups, the
entertainment and news media, businesses, and
teens themselves, through a broad array of
strategies and messages, including a focus on
abstinence, responsible behavior, family
communication, relationships, and values.
``(vii) Assisting organizations seeking to
reduce teen pregnancy in their efforts to
communicate effective messages about preventing
teen pregnancy with a variety of audiences
(including teens, parents, and ethnically
diverse groups).
``(viii) Providing resources for parents
and other adults that help to foster strong
relationships with children, a strategy that
research has shown is effective in reducing
sexual activity and teen pregnancy, including
online access to research, parent guides, tips,
advice from experts, and information about the
media environment of teens.
``(ix) Working directly with individuals
and organizations in the entertainment industry
to provide consultation and serve as a source
of factual information on issues related to
teen pregnancy prevention.
``(3) Collaboration with other organizations.--The
organization operating the Resource Center shall collaborate
with other organizations that have expertise and interest in
teen pregnancy prevention, and that can help reach out to
diverse audiences.
``(4) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there is
appropriated to carry out this subsection, $5,000,000 for
fiscal year 2006. Funds appropriated under this subparagraph
shall remain available for expenditure through fiscal year
2010.''.
SEC. 120. TECHNICAL CORRECTIONS.
(a) Section 409(c)(2)(A) (42 U.S.C. 609(c)(2)(A)), as added by
section 111(b)(1), is amended by inserting a comma after
``appropriate''.
(b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 611(a)(1)(A)(ii)(III))
is amended by striking the last close parenthesis.
(c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is amended by
striking ``section'' and inserting ``sections''.
(d)(1) Section 413 (42 U.S.C. 613) is amended by striking
subsection (g) and redesignating subsections (h) through (j) and
subsections (k) through (q) (as added by sections 101(d), 103(c),
subsections (a), (d), (e), and (f) of section 114, and section 119(d)
of this Act, respectively) as subsections (g) through (p),
respectively.
(2) Each of the following provisions is amended by striking
``413(j)'' and inserting ``413(i)'':
(A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C.
603(a)(5)(A)(ii)(III)).
(B) Section 403(a)(5)(F) (42 U.S.C. 603(a)(5)(F)).
(C) Section 403(a)(5)(G)(ii) (42 U.S.C. 603(a)(5)(G)(ii)).
(D) Section 412(a)(3)(B)(iv) (42 U.S.C. 612(a)(3)(B)(iv)).
TITLE II--ABSTINENCE EDUCATION
SEC. 201. EXTENSION OF ABSTINENCE EDUCATION PROGRAM.
(a) Extension of Appropriations.--Section 510(d) (42 U.S.C. 710(d))
is amended by striking ``2003'' and inserting ``2010''.
(b) Allotment of Funds.--Section 510(a) (42 U.S.C. 710(a)) is
amended--
(1) in the matter preceding paragraph (1), by striking ``an
application for the fiscal year under section 505(a)'' and
inserting ``, for the fiscal year, an application under section
505(a), and an application under this section (in such form and
meeting such terms and conditions as determined appropriate by
the Secretary),''; and
(2) in paragraph (2), to read as follows:
``(2) the percentage described in section 502(c)(1)(B)(ii)
that would be determined for the State under section 502(c) if
such determination took into consideration only those States
that transmitted both such applications for such fiscal
year.''.
(c) Reallotment of Funds.--Section 510 (42 U.S.C. 710) is amended
by adding at the end the following:
``(e)(1) With respect to allotments under subsection (a) for fiscal
year 2006 and subsequent fiscal years, the amount of any allotment to a
State for a fiscal year that the Secretary determines will not be
expended to carry out a program under this section during such fiscal
year or the succeeding fiscal year shall be available for reallotment
from time to time during such fiscal years on such dates as the
Secretary may fix, to other States that the Secretary determines--
``(A) require amounts in excess of amounts previously
allotted under subsection (a) to carry out a program under this
section; and
``(B) will expend such excess amounts during such fiscal
years.
``(2) Reallotments under paragraph (1) shall be made on the basis
of such States' applications under this section, after taking into
consideration the population of low-income children in each such State
as compared with the population of low-income children in all such
States with respect to which a determination under paragraph (1) has
been made by the Secretary.
``(3) Any amount reallotted under paragraph (1) to a State is
deemed to be part of its allotment under subsection (a).''.
(d) Effective Date.--The amendments made by this section shall be
effective with respect to the program under section 510 of the Social
Security Act for fiscal years 2006 and succeeding fiscal years.
TITLE III--CHILD SUPPORT
SEC. 301. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF
OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.
(a) Modification of Rule Requiring Assignment of Support Rights as
a Condition of Receiving TANF.--Section 408(a)(3) (42 U.S.C. 608(a)(3))
is amended to read as follows:
``(3) No assistance for families not assigning certain
support rights to the state.--A State to which a grant is made
under section 403 shall require, as a condition of paying
assistance to a family under the State program funded under
this part, that a member of the family assign to the State any
right the family member may have (on behalf of the family
member or of any other person for whom the family member has
applied for or is receiving such assistance) to support from
any other person, not exceeding the total amount of assistance
so paid to the family, which accrues during the period that the
family receives assistance under the program.''.
(b) Increasing Child Support Payments to Families and Simplifying
Child Support Distribution Rules.--
(1) Distribution rules.--
(A) In general.--Section 457(a) (42 U.S.C. 657(a))
is amended to read as follows:
``(a) In General.--Subject to subsections (d) and (e), the amounts
collected on behalf of a family as support by a State pursuant to a
plan approved under this part shall be distributed as follows:
``(1) Families receiving assistance.--In the case of a
family receiving assistance from the State, the State shall--
``(A) pay to the Federal Government the Federal
share of the amount collected, subject to paragraph
(3)(A);
``(B) retain, or pay to the family, the State share
of the amount collected, subject to paragraph (3)(B);
and
``(C) pay to the family any remaining amount.
``(2) Families that formerly received assistance.--In the
case of a family that formerly received assistance from the
State:
``(A) Current support.--To the extent that the
amount collected does not exceed the current support
amount, the State shall pay the amount to the family.
``(B) Arrearages.--Except as otherwise provided in
an election made under section 454(34), to the extent
that the amount collected exceeds the current support
amount, the State--
``(i) shall first pay to the family the
excess amount, to the extent necessary to
satisfy support arrearages not assigned
pursuant to section 408(a)(3);
``(ii) if the amount collected exceeds the
amount required to be paid to the family under
clause (i), shall--
``(I) pay to the Federal Government
the Federal share of the excess amount
described in this clause, subject to
paragraph (3)(A); and
``(II) retain, or pay to the
family, the State share of the excess
amount described in this clause,
subject to paragraph (3)(B); and
``(iii) shall pay to the family any
remaining amount.
``(3) Limitations.--
``(A) Federal reimbursements.--The total of the
amounts paid by the State to the Federal Government
under paragraphs (1) and (2) of this subsection with
respect to a family shall not exceed the Federal share
of the amount assigned with respect to the family
pursuant to section 408(a)(3).
``(B) State reimbursements.--The total of the
amounts retained by the State under paragraphs (1) and
(2) of this subsection with respect to a family shall
not exceed the State share of the amount assigned with
respect to the family pursuant to section 408(a)(3).
``(4) Families that never received assistance.--In the case
of any other family, the State shall pay the amount collected
to the family.
``(5) Families under certain agreements.--Notwithstanding
paragraphs (1) through (3), in the case of an amount collected
for a family in accordance with a cooperative agreement under
section 454(33), the State shall distribute the amount
collected pursuant to the terms of the agreement.
``(6) State financing options.--To the extent that the
State's share of the amount payable to a family pursuant to
paragraph (2)(B) of this subsection exceeds the amount that the
State estimates (under procedures approved by the Secretary)
would have been payable to the family pursuant to former
section 457(a)(2)(B) (as in effect for the State immediately
before the date this subsection first applies to the State) if
such former section had remained in effect, the State may elect
to have the payment considered a qualified State expenditure
for purposes of section 409(a)(7).
``(7) State option to pass through additional support with
federal financial participation.--
``(A) Families that formerly received assistance.--
Notwithstanding paragraph (2), a State shall not be
required to pay to the Federal Government the Federal
share of an amount collected on behalf of a family that
formerly received assistance from the State to the
extent that the State pays the amount to the family.
``(B) Families that currently receive assistance.--
``(i) In general.--Notwithstanding
paragraph (1), in the case of a family that
receives assistance from the State, a State
shall not be required to pay to the Federal
Government the Federal share of the excepted
portion (as defined in clause (ii)) of any
amount collected on behalf of such family
during a month to the extent that--
``(I) the State pays the excepted
portion to the family; and
``(II) the excepted portion is
disregarded in determining the amount
and type of assistance provided to the
family under such program.
``(ii) Excepted portion defined.--For
purposes of this subparagraph, the term
`excepted portion' means that portion of the
amount collected on behalf of a family during a
month that does not exceed $400 per month, or
in the case of a family that includes 2 or more
children, that does not exceed an amount
established by the State that is not more than
$600 per month.
``(8) States with demonstration waivers.--Notwithstanding
the preceding paragraphs, in the case of a State that, on the
date of enactment of this paragraph, has had in effect since
October 1, 1997, a waiver under section 1115 permitting pass-
through payments of child support collections--
``(A) the State may continue to distribute such
payments to families without regard to the expiration
date of such waiver; and
``(B) the requirement under paragraph (1) to pay to
the Federal Government the Federal share of the amount
collected on behalf of a family shall not apply to the
extent that--
``(i) the State distributes such amount to
the family; and
``(ii) such amount is disregarded in
determining the amount and type of assistance
paid to the family.''.
(B) State plan to include election as to which
rules to apply in distributing child support arrearages
collected on behalf of families formerly receiving
assistance.--Section 454 (42 U.S.C. 654) is amended--
(i) by striking ``and'' at the end of
paragraph (32);
(ii) by striking the period at the end of
paragraph (33) and inserting ``; and''; and
(iii) by inserting after paragraph (33) the
following:
``(34) include an election by the State to apply section
457(a)(2)(B) of this Act or former section 457(a)(2)(B) of this
Act (as in effect for the State immediately before the date
this paragraph first applies to the State) to the distribution
of the amounts which are the subject of such sections and, for
so long as the State elects to so apply such former section,
the amendments made by section 301(d)(1) of the Personal
Responsibility and Individual Development for Everyone Act
shall not apply with respect to the State, notwithstanding
section 301(e) of that Act.''.
(C) Approval of estimation procedures.--Not later
than the date that is 6 months after the date of
enactment of this Act, the Secretary of Health and
Human Services, in consultation with the States (as
defined for purposes of part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.)), shall
establish the procedures to be used to make the
estimate described in section 457(a)(6) of such Act (42
U.S.C. 657(a)(6)).
(2) Current support amount defined.--Section 457(c) (42
U.S.C. 657(c)) is amended by adding at the end the following:
``(5) Current support amount.--The term `current support
amount' means, with respect to amounts collected as support on
behalf of a family, the amount designated as the monthly
support obligation of the noncustodial parent in the order
requiring the support or calculated by the State based on such
order.''.
(c) State Option To Discontinue Older Support Assignments.--Section
457(b) (42 U.S.C. 657(b)) is amended to read as follows:
``(b) Continuation of Assignments.--
``(1) State option to discontinue pre-1997 support
assignments.--
``(A) In general.--Any rights to support
obligations assigned to a State as a condition of
receiving assistance from the State under part A and in
effect on September 30, 1997 (or such earlier date on
or after August 22, 1996, as the State may choose), may
remain assigned after such date.
``(B) Distribution of amounts after assignment
discontinuation.--If a State chooses to discontinue the
assignment of a support obligation described in
subparagraph (A), the State may treat amounts collected
pursuant to such assignment as if such amounts had
never been assigned and may distribute such amounts to
the family in accordance with subsection (a)(4).
``(2) State option to discontinue post-1997 assignments.--
``(A) In general.--Any rights to support
obligations accruing before the date on which a family
first receives assistance under part A that are
assigned to a State under that part and in effect
before the implementation date of this section may
remain assigned after such date.
``(B) Distribution of amounts after assignment
discontinuation.--If a State chooses to discontinue the
assignment of a support obligation described in
subparagraph (A), the State may treat amounts collected
pursuant to such assignment as if such amounts had
never been assigned and may distribute such amounts to
the family in accordance with subsection (a)(4).''.
(d) Conforming Amendments.--
(1) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)), as
amended by section 103(c), is amended--
(A) in subclause (I)(aa), by striking
``457(a)(1)(B)'' and inserting ``457(a)(1)''; and
(B) by adding at the end the following:
``(VI) Portions of certain child
support payments collected on behalf of
and distributed to families no longer
receiving assistance.--Any amount paid
by a State pursuant to clause (i) or
(ii) of section 457(a)(2)(B), but only
to the extent that the State properly
elects under section 457(a)(6) to have
the payment considered a qualified
State expenditure.''.
(2) Section 6402(c) of the Internal Revenue Code of 1986
(relating to offset of past-due support against overpayments)
is amended--
(A) in the first sentence, by striking ``the Social
Security Act.'' and inserting ``of such Act.''; and
(B) by striking the third sentence and inserting
the following: ``The Secretary shall apply a reduction
under this subsection first to an amount certified by
the State as past due support under section 464 of the
Social Security Act before any other reductions allowed
by law.''.
(e) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on October 1, 2009, and shall apply to payments
under parts A and D of title IV of the Social Security Act for
calendar quarters beginning on or after such date, and without
regard to whether regulations to implement such amendments (in
the case of State programs operated under such part D) are
promulgated by such date.
(2) State option to accelerate effective date.--In
addition, a State may elect to have the amendments made by this
section apply to the State and to amounts collected by the
State (and such payments under parts A and D), on and after
such date as the State may select that is not earlier than 18
months after the date of enactment of this Act and not later
than September 30, 2009.
SEC. 302. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR
FAMILIES RECEIVING TANF.
(a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C.
666(a)(10)(A)(i)) is amended--
(1) by striking ``parent, or,'' and inserting ``parent
or''; and
(2) by striking ``upon the request of the State agency
under the State plan or of either parent,''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2007.
SEC. 303. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.
Not later than 6 months after the date of enactment of this Act,
the Secretary of Health and Human Services shall submit to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report on the procedures that the
States use generally to locate custodial parents for whom child support
has been collected but not yet distributed. The report shall include an
estimate of the total amount of undistributed child support and the
average length of time it takes undistributed child support to be
distributed. To the extent the Secretary deems appropriate, the
Secretary shall include in the report recommendations as to whether
additional procedures should be established at the Federal or State
level to expedite the payment of undistributed child support.
SEC. 304. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING
PASSPORT DENIAL.
(a) In General.--Section 452(k)(1) (42 U.S.C. 652(k)(1)) is amended
by striking ``$5,000'' and inserting ``$2,500''.
(b) Conforming Amendment.--Section 454(31) (42 U.S.C. 654(31)) is
amended by striking ``$5,000'' and inserting ``$2,500''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2006.
SEC. 305. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD
SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.
(a) In General.--Section 464 (42 U.S.C. 664) is amended--
(1) in subsection (a)(2)(A), by striking ``(as that term is
defined for purposes of this paragraph under subsection (c))'';
and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``(1) Except as provided in
paragraph (2), as used in'' and inserting
``In''; and
(ii) by inserting ``(whether or not a
minor)'' after ``a child'' each place it
appears; and
(B) by striking paragraphs (2) and (3).
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2007.
SEC. 306. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
CONNECTED DISABILITIES IN ORDER TO ENFORCE OBLIGATIONS.
(a) In General.--Section 459(h)(1)(A)(ii)(V)) (42 U.S.C.
659(h)(1)(A)(ii)(V)) is amended by striking all that follows ``Armed
Forces'' and inserting ``, except that such compensation shall not be
subject to withholding pursuant to this section for payment of alimony
unless the former member to whom it is payable is in receipt of retired
or retainer pay and has waived a portion of such pay in order to
receive such compensation;''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2007.
SEC. 307. IMPROVING FEDERAL DEBT COLLECTION PRACTICES.
(a) In General.--Section 3716(h)(3) of title 31, United States
Code, is amended to read as follows:
``(3)(A) Except as provided in subparagraph (B), in applying this
section with respect to any debt owed to a State, subsection (c)(3)(A)
shall not apply.
``(B) Subsection (c)(3)(A) shall apply with respect to payments
owed to an individual under title II of the Social Security Act
(notwithstanding any other provision of law, including section 207 of
the Social Security Act (42 U.S.C. 407)) for purposes of offset under
this section of such payments to collect past-due support being
enforced by a State.''.
(b) Conforming Amendment.--Section 3701(d)(2) of title 31, United
States Code, is amended by striking ``section 3716(c) of this title''
and inserting ``subsections (c) and (h)(3) of section 3716 of this
title''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date that is 18 months after the date of enactment of
this Act.
SEC. 308. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.
Section 452(j) (42 U.S.C. 652(j)) is amended by inserting ``or the
amount appropriated under this paragraph for fiscal year 2002,
whichever is greater'' before ``, which shall be available''.
SEC. 309. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE FUNDING.
Section 453(o) (42 U.S.C. 653(o)) is amended--
(1) in the first sentence, by inserting ``or the amount
appropriated under this paragraph for fiscal year 2002,
whichever is greater'' before ``, which shall be available'';
and
(2) in the second sentence, by striking ``for each of
fiscal years 1997 through 2001''.
SEC. 310. IDENTIFICATION AND SEIZURE OF ASSETS HELD BY MULTISTATE
FINANCIAL INSTITUTIONS.
(a) Duties of the Secretary.--Section 452(l) (42 U.S.C. 652(l)) is
amended to read as follows:
``(l) Identification and Seizure of Assets Held by Multistate
Financial Institutions.--
``(1) In general.--The Secretary, through the Federal
Parent Locator Service, is authorized--
``(A) to assist State agencies operating programs
under this part and financial institutions doing
business in 2 or more States in reaching agreements
regarding the receipt from such institutions, and the
transfer to the State agencies, of information that may
be provided pursuant to section 466(a)(17)(A)(i) or
469A(a);
``(B) to perform data matches comparing information
from such State agencies and financial institutions
entering into such agreements with respect to
individuals owing past-due support; and
``(C) to seize assets, held by such financial
institutions, of individuals identified through such
data matches who owe past-due support, by--
``(i) issuing a notice of lien or levy to
such financial institutions requiring them to
encumber such assets for 30 calendar days and
to subsequently transfer such assets to the
Secretary (except that the Secretary shall
promptly release such lien or levy within such
30-day period upon request of the State
agencies responsible for collecting past-due
support from such individuals); and
``(ii) providing notice to such individuals
of the lien or levy upon their assets and
informing them--
``(I) of their procedural due
process rights, including the
opportunity to contest such lien or
levy to the appropriate State agency;
and
``(II) in the case of jointly owned
assets, of the process by which other
owners may secure their respective
share of such assets, according to such
policies and procedures as the
Secretary may specify with respect to
seizure of such assets.
``(2) Transfer of funds to states.--Assets seized from
individuals under paragraph (1)(C) shall be promptly
transferred by the Secretary to the State agencies responsible
for collecting past-due support from such individuals for
distribution pursuant to section 457.
``(3) Relationship to state laws.--Notwithstanding any
provision of State law, an individual receiving a notice under
paragraph (1)(C) shall have 21 calendar days from the date of
such notice to contest the lien or levy imposed under such
paragraph by requesting an administrative review by the State
agency responsible for collecting past-due support from such
individual.
``(4) Treatment of disclosures.--For purposes of section
1113(d) of the Right to Financial Privacy Act of 1978, a
disclosure pursuant to this subsection shall be considered a
disclosure pursuant to a Federal statute.''.
(b) State Duties.--
(1) Individuals with assets subject to federal seizure.--
Section 454 (42 U.S.C. 654), as amended by section
301(b)(1)(B)(iii), is amended--
(A) in paragraph (33), by striking ``and'' at the
end;
(B) in paragraph (34), by striking the period and
inserting ``; and''; and
(C) by inserting after paragraph (34), the
following:
``(35) provide that the State shall--
``(A) upon furnishing the Secretary with
information under section 452(l) with respect to
individuals owing past-due support, provide notice to
such individuals that their assets held in financial
institutions shall be subject to seizure to pay such
past-due support, and shall--
``(i) instruct such individuals of the
steps which may be taken to contest the State's
determination that past-due support is owed or
the amount of the past-due support; and
``(ii) include, in the case of jointly
owned assets, a description of the process by
which other owners may secure their share of
such assets, in accordance with such policies
and procedures as the Secretary may specify
with respect to seizure of such assets;
``(B) promptly resolve cases in which such
individuals contest the State's determination with
respect to past-due support, and provide for expedited
refund of any assets erroneously seized and transferred
to the State under such section 452(l); and
``(C) except as otherwise specified under this
paragraph or by the Secretary, ensure that the due
process protections afforded under this paragraph to
individuals whose assets are subject to seizure under
section 452(l) are generally consistent with, and to
the extent practicable conform to, the due process
protections afforded by the State to individuals
subject to offset of tax refunds under section 464.''.
(2) Reimbursement of federal costs.--Section 453(k)(3) (42
U.S.C. 653(k)(3)) is amended--
(A) in the paragraph heading, by inserting ``and
enforcement services'' after ``information'';
(B) by inserting ``or enforcement services'' after
``that receives information'';
(C) by inserting ``or section 452(l)'' after
``pursuant to this section''; and
(D) by striking ``in furnishing the information''
and inserting ``in furnishing such information or
enforcement services''.
(c) Conforming Amendments.--
(1) State law requirements.--Section 466(a)(17) (42 U.S.C.
666(a)(17)) is amended--
(A) in subparagraph (A)--
(i) in clause (i), by inserting ``pursuant
to section 452(l)'' after ``and the Federal
Parent Locator Service''; and
(ii) in clause (ii), by inserting ``issued
by the State agency or by the Secretary under
section 452(l)'' after ``in response to a
notice of lien or levy''; and
(B) in subparagraph (C)--
(i) in clause (i), by inserting ``or to the
Federal Parent Locator Service'' after ``to the
State agency''; and
(ii) in clause (ii), by striking ``issued
by the State agency''.
(2) Nonliability for financial institutions.--Section
469A(a) (42 U.S.C. 669a(a)) is amended by inserting ``section
452(l) or'' before ``section 466(a)(17)(A)''.
SEC. 311. INFORMATION COMPARISONS WITH INSURANCE DATA.
(a) Duties of the Secretary.--Section 452 (42 U.S.C. 652) is
amended by adding at the end the following:
``(m) Comparisons With Insurance Information.--
``(1) In general.--The Secretary, through the Federal
Parent Locator Service, is authorized--
``(A) to compare information concerning individuals
owing past-due support with information maintained by
insurers (or their agents) concerning insurance claims,
settlements, awards, and payments; and
``(B) to furnish information resulting from such
data matches to the State agencies responsible for
collecting child support from such individuals.
``(2) Liability.--No insurer (including any agent of an
insurer) shall be liable under any Federal or State law to any
person for any disclosure provided for under this subsection,
or for any other action taken in good faith in accordance with
the provisions of this subsection.''.
(b) State Reimbursement of Federal Costs.--Section 453(k)(3) (42
U.S.C. 653(k)(3)), as amended by section 310(b)(2), is amended by
striking ``section 452(l)'' and inserting ``subsection (l) or (m) of
section 452''.
SEC. 312. TRIBAL ACCESS TO THE FEDERAL PARENT LOCATOR SERVICE.
Section 453(c)(1) (42 U.S.C. 653(c)(1)) is amended by inserting
``or Indian tribe or tribal organization'' after ``any agent or
attorney of any State''.
SEC. 313. REIMBURSEMENT OF SECRETARY'S COSTS OF INFORMATION COMPARISONS
AND DISCLOSURE FOR ENFORCEMENT OF OBLIGATIONS ON HIGHER
EDUCATION ACT LOANS AND GRANTS.
Section 453(j)(6)(F) (42 U.S.C. 653(j)(6)(F)) is amended by
striking ``additional''.
SEC. 314. TECHNICAL AMENDMENT RELATING TO COOPERATIVE AGREEMENTS
BETWEEN STATES AND INDIAN TRIBES.
Section 454(33) (42 U.S.C. 654(33)) is amended by striking ``that
receives funding pursuant to section 428 and''.
SEC. 315. CLAIMS UPON LONGSHORE AND HARBOR WORKERS' COMPENSATION FOR
CHILD SUPPORT.
(a) In General.--Section 17 of the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. 917) is amended to read as follows:
``liens on compensation; child support enforcement
``Sec. 17. (a) Liens.--Where a trust fund which complies with
section 302(c) of the Labor Management Relations Act, 1947 (29 U.S.C.
186(c)) established pursuant to a collective-bargaining agreement in
effect between an employer and an employee covered under this Act has
paid disability benefits to an employee which the employee is legally
obligated to repay by reason of the employee's entitlement to
compensation under this Act or under a settlement, the Secretary shall
authorize a lien on such compensation in favor of the trust fund for
the amount of such payments.
``(b) Child Support.--Compensation or benefits due or payable to an
individual under this Act (other than medical benefits) shall be
subject, in like manner and to the same extent as similar compensation
or benefits under a workers' compensation program if established under
State law--
``(1) to withholding in accordance with State law enacted
pursuant to subsections (a)(1) and (b) of section 466 of the
Social Security Act and regulations under such subsections; and
``(2) to any other legal process brought, by a State agency
administering a program under a State plan approved under part
D of title IV of the Social Security Act or by an individual
obligee, to enforce the legal obligation of the individual to
provide child support or alimony.''.
(b) Conforming Amendments.--Section 16 of the Longshore and Harbor
Workers' Compensation Act (33 U.S.C. 916) is amended--
(1) by striking ``No'' and inserting ``Except as provided
by this Act, no''; and
(2) by striking ``, except as provided by this Act,'' after
``under this Act''.
SEC. 316. STATE OPTION TO USE STATEWIDE AUTOMATED DATA PROCESSING AND
INFORMATION RETRIEVAL SYSTEM FOR INTERSTATE CASES.
Section 466(a)(14)(A)(iii) (42 U.S.C. 666(a)(14)(A)(iii)) is
amended by inserting before the semicolon the following: ``(but the
assisting State may establish a corresponding case based on such other
State's request for assistance)''.
SEC. 317. STATE LAW REQUIREMENT CONCERNING THE UNIFORM INTERSTATE
FAMILY SUPPORT ACT (UIFSA).
(a) In General.--Section 466(f) (42 U.S.C. 666(f)) is amended--
(1) by striking ``and as in effect on August 22, 1996,'';
and
(2) by striking ``adopted as of such date'' and inserting
``adopted as of August, 2001''.
(b) Full Faith and Credit for Child Support Orders.--Section 1738B
of title 28, United States Code, is amended--
(1) by striking subsection (d) and inserting the following:
``(d) Continuing Exclusive Jurisdiction.--
``(1) In general.--Subject to paragraph (2), a court of a
State that has made a child support order consistent with this
section has continuing, exclusive jurisdiction to modify its
order if the order is the controlling order and--
``(A) the State is the child's State or the
residence of any individual contestant; or
``(B) if the State is not the residence of the
child or an individual contestant, the contestants
consent in a record or in open court that the court may
continue to exercise jurisdiction to modify its order.
``(2) Requirement.--A court may not exercise its
continuing, exclusive jurisdiction to modify the order if the
court of another State, acting in accordance with subsections
(e) and (f), has made a modification of the order.'';
(2) in subsection (e)(2)--
(A) in subparagraph (A), by striking ``because''
and all that follows through the semicolon and
inserting ``pursuant to paragraph (1) or (2) of
subsection (d);'' and
(B) in subparagraph (B), by inserting ``with
jurisdiction over at least 1 of the individual
contestants or that is located in the child's State''
after ``another State'';
(3) in subsection (f)--
(A) in the subsection heading, by striking
``Recognition of Child Support Orders'' and inserting
``Determination of Controlling Child Support Order'';
(B) in the matter preceding paragraph (1), by
striking ``shall apply'' and all that follows through
the colon and inserting ``having personal jurisdiction
over both individual contestants shall apply the
following rules and by order shall determine which
order controls:'';
(C) in paragraph (1), by striking ``must be'' and
inserting ``controls and must be so'';
(D) in paragraph (2), by striking ``must be
recognized'' and inserting ``controls'';
(E) in paragraph (3), by striking ``must be
recognized'' each place it appears and inserting
``controls'';
(F) in paragraph (4)--
(i) by striking ``may'' and inserting
``shall''; and
(ii) by striking ``must be recognized'' and
inserting ``controls''; and
(G) by striking paragraph (5);
(4) by striking subsection (g) and inserting the following:
``(g) Enforcement of Modified Orders.--If a child support order
issued by a court of a State is modified by a court of another State
which properly assumed jurisdiction, the issuing court--
``(1) may enforce its order that was modified only as to
arrears and interest accruing before the modification;
``(2) may provide appropriate relief for violations of its
order which occurred before the effective date of the
modification; and
``(3) shall recognize the modifying order of the other
State for the purpose of enforcement.'';
(5) in subsection (h)--
(A) in paragraph (1), by striking ``and (3)'' and
inserting ``, (3), and (4)'';
(B) in paragraph (2), by inserting ``the
computation and payment of arrearages, and the accrual
of interest on the arrearages,'' after ``obligations of
support,''; and
(C) by adding at the end the following:
``(4) Prospective application.--After a court determines
which is the controlling order and issues an order
consolidating arrears, if any, a court shall prospectively
apply the law of the State issuing the controlling order,
including that State's law with respect to interest on arrears,
current and future support, and consolidated arrears.''; and
(6) in subsection (i), by inserting ``and subsection (d)(2)
does not apply'' after ``issuing State''.
SEC. 318. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
(a) Authority To Make Grants to Indian Tribes.--Section 469B (42
U.S.C. 669b) is amended--
(1) in the section heading, by inserting ``and indian
tribes'' after ``states''; and
(2) in subsection (a), by inserting ``and Indian tribes or
tribal organizations'' after ``to enable States''.
(b) Amount of Grants.--Section 469B(b) (42 U.S.C. 669b(b)) is
amended to read as follows:
``(b) Amount of Grants.--
``(1) Grants to states.--The amount of the grant to be made
to a State under this section for a fiscal year shall be an
amount equal to the lesser of--
``(A) 90 percent of State expenditures during the
fiscal year for activities described in subsection (a);
or
``(B) the allotment of the State under subsection
(c) for the fiscal year.
``(2) Grants to indian tribes.--An Indian tribe or tribal
organization operating a program under section 455 that has
operated such program throughout the preceding fiscal year and
has an application under this section approved by the Secretary
shall receive a grant under this section for a fiscal year in
an amount equal to the allotment of such Indian tribe or tribal
organization under subsection (c)(2) for the fiscal year.''.
(c) Allotments.--Section 469B(c) (42 U.S.C. 669b(c)) is amended to
read as follows:
``(c) Allotments.--
``(1) Allotments to states.--
``(A) In general.--Subject to the subparagraph (C),
the allotment of a State for a fiscal year is the
amount that bears the same ratio to the amount
specified in subparagraph (B) for such fiscal year as
the number of children in the State living with only 1
parent bears to the total number of such children in
all States.
``(B) Amount available for allotment.--For purposes
of subparagraph (A), the amount specified in this
subparagraph is the following amount, reduced by the
total allotments to Indian tribes or tribal
organizations in accordance with paragraph (2):
``(i) $12,000,000 for fiscal year 2006.
``(ii) $14,000,000 for fiscal year 2007.
``(iii) $16,000,000 for fiscal year 2008.
``(iv) $20,000,000 for fiscal year 2009 and
each succeeding fiscal year.
``(C) Minimum state allotment.--The Secretary shall
adjust allotments to States under subparagraph (A) as
necessary to ensure that no State is allotted less
than--
``(i) $120,000 for fiscal year 2006;
``(ii) $140,000 for fiscal year 2007;
``(iii) $160,000 for fiscal year 2008; and
``(iv) $180,000 for fiscal year 2009 and
each succeeding fiscal year.
``(2) Allotments to indian tribes.--
``(A) In general.--Subject to subparagraph (C), the
allotment of an Indian tribe or tribal organization
described in subsection (b)(2) for a fiscal year is an
amount that bears the same ratio to the amount
specified in subparagraph (B) for such fiscal year as
the number of children in the Indian tribe or tribal
organization living with only 1 parent bears to the
total number of such children in all Indian tribes and
tribal organizations eligible to receive grants under
this section for such year.
``(B) Amount available for allotment.--For purposes
of subparagraph (A), the amount available under this
subparagraph is an amount, deducted from the amount
specified in paragraph (1)(B), not to exceed--
``(i) $250,000 for fiscal year 2006;
``(ii) $600,000 for fiscal year 2007;
``(iii) $800,000 for fiscal year 2008; and
``(iv) $1,670,000 for fiscal year 2009 and
each succeeding year.
``(C) Minimum and maximum tribal allotment.--The
Secretary shall adjust allotments to Indian tribes and
tribal organizations under subparagraph (A) as
necessary to ensure that no Indian tribe or tribal
organization is allotted, for a fiscal year, an amount
which is less than $10,000 or more than the minimum
State allotment for such fiscal year.''.
(d) Administration.--Section 469B(e) (42 U.S.C. 669b(e)) is amended
to read as follows:
``(e) Administration.--
``(1) Grants to states.--Each State to which a grant is
made under this section--
``(A) may administer State programs funded with the
grant, directly or through grants to or contracts with
courts, local public agencies, or nonprofit private
entities; and
``(B) shall not be required to operate such
programs on a statewide basis.
``(2) Grants to states or indian tribes.--Each State or
Indian tribe or tribal organization to which a grant is made
under this section shall monitor, evaluate, and report on such
programs in accordance with regulations prescribed by the
Secretary.''.
SEC. 319. TIMING OF CORRECTIVE ACTION YEAR FOR STATE NONCOMPLIANCE WITH
CHILD SUPPORT ENFORCEMENT PROGRAM REQUIREMENTS.
(a) In General.--Section 409(a)(8) (42 U.S.C. 609(a)(8)) is
amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i)(I), by
striking ``in a fiscal year'' and inserting ``for a
fiscal year''; and
(B) in clause (ii)--
(i) in the matter preceding subclause (I),
by striking ``that, with respect to the
succeeding fiscal year--'' and inserting
``that, with respect to the period described in
subparagraph (D)--''; and
(ii) in the matter following subclause
(II), by striking ``the end of such succeeding
fiscal year'' and inserting ``the end of the
period described in subparagraph (D)''; and
(2) by adding at the end the following:
``(D) Period described.--Subject to subparagraph
(E), for purposes of this paragraph, the period
described in this subparagraph is the period that
begins with the date on which the Secretary makes a
finding described in subparagraph (A)(i) with respect
to State performance in a fiscal year and ends on
September 30 of the fiscal year following the fiscal
year in which the Secretary makes such a finding.
``(E) No penalty if state corrects noncompliance in
finding year.--The Secretary shall not take a reduction
described in subparagraph (A) with respect to a
noncompliance described in clause (i) of that
subparagraph if the Secretary determines that the State
has corrected the noncompliance in the fiscal year in
which the Secretary makes the finding of the
noncompliance.''.
(b) Effective Date.--The amendments made by subsection (a) shall be
effective with respect to determinations of State compliance for fiscal
year 2002 and succeeding fiscal years.
(c) Special Rule for Fiscal Year 2001.--Notwithstanding any other
provision of law, the Secretary of Health and Human Services shall not
take against amounts otherwise payable to a State, a reduction
described in section 409(a)(8)(A) of the Social Security Act (42 U.S.C.
609(a)(8)(A)) with respect to a noncompliance described in such section
occurring in fiscal year 2001 if the Secretary determines that the
State has corrected such noncompliance in fiscal year 2002 or 2003.
SEC. 320. REQUIREMENT THAT STATE CHILD SUPPORT ENFORCEMENT AGENCIES
SEEK MEDICAL SUPPORT FOR CHILDREN FROM EITHER PARENT.
(a) State Agencies Required To Seek Medical Support From Either
Parent.--
(1) In general.--Section 466(a)(19)(A) (42 U.S.C.
666(a)(19)(A)) is amended by striking ``which include a
provision for the health care coverage of the child are
enforced'' and inserting ``shall include a provision for
medical support for the child to be provided by either or both
parents, and shall be enforced''.
(2) Conforming amendments.--
(A) Title iv-d.--
(i) Section 452(f) (42 U.S.C. 652(f)) is
amended by striking ``include medical support
as part of any child support order and enforce
medical support'' and inserting ``enforce
medical support included as part of a child
support order''.
(ii) Section 466(a)(19) (42 U.S.C.
666(a)(19)), as amended by paragraph (1), is
amended--
(I) in subparagraph (A)--
(aa) by striking ``section
401(e)(3)(C)'' and inserting
``section 401(e)''; and
(bb) by striking ``section
401(f)(5)(C)'' and inserting
``section 401(f)'';
(II) in subparagraph (B)--
(aa) by striking
``noncustodial'' each place it
appears; and
(bb) in clause (iii), by
striking ``section 466(b)'' and
inserting ``subsection (b)'';
and
(III) in subparagraph (C), by
striking ``noncustodial'' each place it
appears and inserting ``obligated''.
(B) ERISA.--Section 609(a)(5)(C) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1169(a)(5)(C)) is amended by striking ``noncustodial''
each place it appears.
(C) State or local governmental group health
plans.--Section 401(e)(2) of the Child Support
Performance and Incentive Act of 1998 (29 U.S.C. 1169
note) is amended, in the matter preceding subparagraph
(A), by striking ``who is a noncustodial parent of the
child''.
(D) Church plans.--Section 401(f)(5)(C) of the
Child Support Performance and Incentive Act of 1998 (29
U.S.C. 1169 note) is amended by striking
``noncustodial'' each place it appears.
(b) Enforcement of Medical Support Requirements.--Section 452(f)
(42 U.S.C. 652(f)), as amended by subsection (a)(2)(A)(i), is amended
by inserting after the first sentence the following: ``A State agency
administering the program under this part is authorized to enforce
medical support against a custodial parent whenever health care
coverage is available to the custodial parent at a reasonable cost,
notwithstanding any provision of this part (other than this sentence)
that might be construed to limit or bar such enforcement actions.''.
(c) Definition of Medical Support.--Section 452(f) (42 U.S.C.
652(f)), as amended by subsections (a)(2)(A)(i) and (b), is amended by
adding at the end the following: ``For purposes of this part, the term
`medical support' may include health care coverage, such as coverage
under a health insurance plan (including payment of costs of premiums,
co-payments, and deductibles) and payment for medical expenses incurred
on behalf of a child.''.
(d) Effective Date.--Subject to section 701(b), the amendments made
by this section shall apply to child support orders issued or amended
after the date of enactment of this Act.
SEC. 321. NOTICE TO STATE CHILD SUPPORT ENFORCEMENT AGENCY FROM HEALTH
CARE PLAN ADMINISTRATOR UNDER CERTAIN CIRCUMSTANCES WHEN
A CHILD LOSES HEALTH CARE COVERAGE.
(a) ERISA.--Section 606(a)(4) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1166(a)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by adding ``and'' after the comma
at the end; and
(3) by inserting after subparagraph (B) the following:
``(C) in any case in which the qualifying event
with respect to which notice to a qualified beneficiary
is required by subparagraph (A) or (B) is a qualifying
event with respect to the parent of a qualified
beneficiary who is an alternative recipient under a
qualified medical child support order (as such terms
are defined in section 609(a)(2)), the State agency
administering the program under part D of title IV of
the Social Security Act that issued, or is authorized
to enforce, such order,''.
(b) Internal Revenue Code of 1986.--Section 4980B(f)(6)(D) of the
Internal Revenue Code of 1986 is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by adding ``and'' after the comma at
the end; and
(3) by inserting after clause (ii) the following:
``(iii) in any case in which the qualifying
event with respect to which notice to a
qualified beneficiary is required by clause (i)
or (ii) is a qualifying event with respect to
the parent of a qualified beneficiary who is an
alternative recipient under a qualified medical
child support order (as such terms are defined
in section 609(a)(2) of the Employee Retirement
Income Security Act of 1974), the State agency
administering the program under part D of title
IV of the Social Security Act which issued, or
is authorized to enforce, such order,''.
(c) Public Health Service Act.--Section 2206(4) of the Public
Health Service Act (42 U.S.C. 300bb-6(4)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by adding ``and'' after the comma
at the end; and
(3) by inserting after subparagraph (B) the following:
``(C) in any case in which the qualifying event
with respect to which notice to a qualified beneficiary
is required by subparagraph (A) or (B) is a qualifying
event with respect to the parent of a qualified
beneficiary who is an alternative recipient (as defined
in paragraph (4)(B) of section 401(e) of the Child
Support Performance and Incentive Act of 1998) under a
National Medical Support Notice issued in accordance
with that section, the State agency issuing, or that is
authorized to enforce, such notice,''.
(d) Effective Date.--The amendments made by this section apply to
qualifying events occurring on or after the date of enactment of this
Act.
SEC. 322. AUTHORITY TO CONTINUE STATE PROGRAM FOR MONITORING AND
ENFORCEMENT OF CHILD SUPPORT ORDERS.
The Secretary of Health and Human Services shall not require the
State of Texas, in operating the program established under part D of
title IV of the Social Security Act, to apply for a waiver from the
requirements of section 454(4)(A)(ii) of such Act (42 U.S.C.
654(4)(A)(ii)) to continue to operate the State's program for
monitoring and enforcement of a court order without the necessity of a
written application, as in effect on the date of enactment of this Act.
Such State may continue to operate such program and expand it to
additional counties, as the State determines necessary, without the
necessity of applying for a waiver from the Secretary so long as an
individual to whom the support is owed and who would otherwise have to
sign a written application for services under such program has an
opportunity to decline such services.
SEC. 323. TECHNICAL AMENDMENT RELATING TO INFORMATION COMPARISONS AND
DISCLOSURE TO ASSIST IN FEDERAL DEBT COLLECTION.
(a) In General.--Section 643 of division H of the Consolidated
Appropriations Act, 2005 (Public Law 108-447) is amended--
(1) by striking ``Section 653(j)'' and all that follows
through ``new paragraph'' and inserting ``Section 453(j) of the
Social Security Act (42 U.S.C. 653(j)) is amended by adding at
the end the following new paragraph:''; and
(2) by redesignating the paragraph (7) added to section
453(j) of the Social Security Act (42 U.S.C. 653(j)) by the
amendment made by such section as paragraph (9).
(b) Effective Date.--The amendments made by subsection (a) shall
take effect as if included in the enactment of section 643 of division
H of the Consolidated Appropriations Act, 2005 (Public Law 108-447).
TITLE IV--CHILD WELFARE
SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEMONSTRATION PROJECTS.
Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by striking
``2003'' and inserting ``2010''.
SEC. 402. REMOVAL OF COMMONWEALTH OF PUERTO RICO IV-E FUNDS FROM
LIMITATION ON PAYMENTS.
Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by section
116(b)(2), is amended--
(1) by striking ``Paragraph (1)'' and inserting the
following:
``(A) In general.--Paragraph (1)'';
(2) in subparagraph (A) (as added by paragraph (1)), by
striking ``or 418(a)(4)(B)'' and inserting ``418(a)(4)(B),
473A, or, subject to clause (ii) of subparagraph (B), payments
to Puerto Rico described in clause (i) of that subparagraph''
before the period; and
(3) by adding at the end the following:
``(B) Certain payments to puerto rico.--
``(i) Payments described.--For purposes of
subparagraph (A), payments described in this
subparagraph are payments made to Puerto Rico
under section 474 for each of fiscal years 2007
through 2010 that exceed the total amount of
payments made to Puerto Rico under that section
for fiscal year 2003.
``(ii) Limitation.--The total amount of
payments to Puerto Rico described in clause (i)
that are disregarded under subparagraph (A) may
not exceed $6,250,000 for each of fiscal years
2007 through 2010.''.
SEC. 403. AUTHORITY OF INDIAN TRIBES TO RECEIVE FEDERAL FUNDS FOR
FOSTER CARE AND ADOPTION ASSISTANCE.
(a) Children Placed in Tribal Custody Eligible for Foster Care
Funding.--Section 472(a)(2) (42 U.S.C. 672(a)(2)) is amended--
(1) by striking ``or (B)'' and inserting ``(B)''; and
(2) by inserting before the semicolon the following: ``, or
(C) an Indian tribe or tribal organization (as defined in
section 479B(e)) or an intertribal consortium if the Indian
tribe, tribal organization, or consortium (i) is operating a
program pursuant to section 479B, (ii) has a cooperative
agreement with a State pursuant to section 479B(c), or (iii)
submits to the Secretary a description of the arrangements
(jointly developed or developed in consultation with the State)
made by the Indian tribe, tribal organization, or consortium
for the payment of funds and the provision of the child welfare
services and protections required by this title''.
(b) Programs Operated by Indian Tribal Organizations.--Part E of
title IV (42 U.S.C. 670 et seq.) is amended by adding at the end the
following:
``SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.
``(a) Application.--Except as provided in subsection (b), this part
shall apply to an Indian tribe or tribal organization that elects to
operate a program under this part in the same manner as this part
applies to a State.
``(b) Modification of Plan Requirements.--
``(1) Service area; standards.--
``(A) In general.--Subject to subparagraph (B), in
the case of an Indian tribe or tribal organization
submitting a plan for approval under section 471, the
plan shall--
``(i) in lieu of the requirement of section
471(a)(3), identify the service area or areas
and population to be served by the Indian tribe
or tribal organization; and
``(ii) in lieu of the requirement of
section 471(a)(10), provide for the approval of
foster homes pursuant to tribal standards and
in a manner that ensures the safety of, and
accountability for, children placed in foster
care.
``(B) Special rule.--With respect to an Indian
tribe located in the State of Alaska--
``(i) clause (ii) of subparagraph (A) shall
not apply; and
``(ii) the requirement of section
471(a)(10) shall apply to a plan submitted by
such tribe.
``(2) Determination of federal share.--
``(A) Per capita income.--
``(i) In general.--For purposes of
determining the Federal medical assistance
percentage applicable to an Indian tribe or
tribal organization under paragraphs (1) and
(2) of section 474(a), the calculation of an
Indian tribe's or tribal organization's per
capita income shall be based upon the service
population of the Indian tribe or tribal
organization as defined in its plan in
accordance with paragraph (1)(A).
``(ii) Consideration of other
information.--An Indian tribe or tribal
organization may submit to the Secretary such
information as the Indian tribe or tribal
organization considers relevant to the
calculation of the per capita income of the
Indian tribe or tribal organization, and the
Secretary shall consider such information
before making the calculation.
``(B) Administrative expenditures.--The Secretary
shall, by regulation, determine the proportions to be
paid to Indian tribes and tribal organizations pursuant
to section 474(a)(3), except that in no case shall an
Indian tribe or tribal organization receive a lesser
proportion than the corresponding amount specified for
a State in that section.
``(C) Sources of non-federal share.--An Indian
tribe or tribal organization may use Federal or State
funds to match payments for which the Indian tribe or
tribal organization is eligible under section 474.
``(3) Modification of other requirements.--Upon the request
of an Indian tribe, tribal organization, or a consortia of
tribes or tribal organizations, the Secretary may modify any
requirement under this part if, after consulting with the
Indian tribe, tribal organization, or consortia of tribes or
tribal organizations, the Secretary determines that
modification of the requirement would advance the best
interests and the safety of children served by the Indian
tribe, tribal organization, or consortia of tribes or tribal
organizations.
``(4) Consortium.--The participating Indian tribes or
tribal organizations of an intertribal consortium may develop
and submit a single plan under section 471 that meets the
requirements of this section.
``(c) Cooperative Agreements.--An Indian tribe, tribal
organization, or intertribal consortium and a State may enter into a
cooperative agreement for the administration or payment of funds
pursuant to this part. In any case where an Indian tribe, tribal
organization, or intertribal consortium and a State enter into a
cooperative agreement that incorporates any of the provisions of this
section, those provisions shall be valid and enforceable. Any such
cooperative agreement that is in effect as of the date of enactment of
this section, shall remain in full force and effect subject to the
right of either party to the agreement to revoke or modify the
agreement pursuant to the terms of the agreement.
``(d) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall, in full consultation
with Indian tribes and tribal organizations, promulgate regulations to
carry out this section.
``(e) Definitions of Indian Tribe; Tribal Organizations.--In this
section, the terms `Indian tribe' and `tribal organization' have the
meanings given those terms in subsections (e) and (l) of section 4 of
the Indian Self-Determination and Education Assistance Act (25 U.S.C.
450b), respectively, except that, with respect to the State of Alaska,
the term `Indian tribe' has the meaning given that term in section
419(4)(B).''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2006, without regard to whether regulations to
implement such amendments have been promulgated as of such date.
SEC. 404. TECHNICAL CORRECTION.
Section 1130(b)(1) (42 U.S.C. 1320a-9(b)(1)) is amended by striking
``422(b)(9)'' and inserting ``422(b)(10)''.
TITLE V--SUPPLEMENTAL SECURITY INCOME
SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY
DETERMINATIONS.
Section 1633 (42 U.S.C. 1383b) is amended by adding at the end the
following:
``(e)(1) The Commissioner of Social Security shall review
determinations, made by State agencies pursuant to subsection (a) in
connection with applications for benefits under this title on the basis
of blindness or disability, that individuals who have attained 18 years
of age are blind or disabled. Any review by the Commissioner of Social
Security of a State agency determination under this paragraph shall be
made before any action is taken to implement the determination.
``(2)(A) In carrying out paragraph (1), the Commissioner of Social
Security shall review--
``(i) with respect to fiscal year 2006, at least 25 percent
of all determinations referred to in paragraph (1) that are
made in such fiscal year; and
``(ii) with respect to each of fiscal years 2006 through
2015, at least 50 percent of all such determinations that are
made in each such fiscal year.
``(B) In conducting reviews pursuant to subparagraph (A), the
Commissioner of Social Security shall, to the extent feasible, select
for review those determinations which the Commissioner of Social
Security identifies as being the most likely to be incorrect.''.
SEC. 502. TEMPORARY EXPANSION OF LENGTH OF TIME-LIMITED ELIGIBILITY OF
QUALIFIED ALIENS FOR SUPPLEMENTAL SECURITY INCOME
BENEFITS.
(a) In General.--During the period described in subsection (b),
subsection (a)(2)(A) of section 402 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612) shall be
applied to the program described in subsection (a)(3)(A) of such
section by substituting ``9 years'' for ``7 years''.
(b) Period Described.--For purposes of subsection (a), the period
described in this subsection is the period that begins on the first day
of the month in which this Act is enacted and ends on September 30,
2008.
(c) Effective Date.--This section shall be effective with respect
to benefits payable under the program described in section 402(a)(3)(A)
of the Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (8 U.S.C. 1612(a)(3)(A)) for months occurring during the period
described in subsection (b).
TITLE VI--TRANSITIONAL MEDICAL ASSISTANCE
SEC. 601. EXTENSION AND SIMPLIFICATION OF THE TRANSITIONAL MEDICAL
ASSISTANCE PROGRAM (TMA).
(a) Option of Continuous Eligibility for 12 Months; Option of
Continuing Coverage for Up to an Additional Year.--
(1) Option of continuous eligibility for 12 months by
making reporting requirements optional.--Section 1925(b) (42
U.S.C. 1396r-6(b)) is amended--
(A) in paragraph (1), by inserting ``, at the
option of a State,'' after ``and which'';
(B) in paragraph (2)(A), by inserting ``Subject to
subparagraph (C):'' after ``(A) Notices.--'';
(C) in paragraph (2)(B), by inserting ``Subject to
subparagraph (C):'' after ``(B) Reporting
requirements.--'';
(D) by adding at the end the following:
``(C) State option to waive notice and reporting
requirements.--A State may waive some or all of the
reporting requirements under clauses (i) and (ii) of
subparagraph (B). Insofar as it waives such a reporting
requirement, the State need not provide for a notice
under subparagraph (A) relating to such requirement.'';
and
(E) in paragraph (3)(A)(iii), by inserting ``the
State has not waived under paragraph (2)(C) the
reporting requirement with respect to such month under
paragraph (2)(B) and if'' after ``6-month period if''.
(2) State option to extend eligibility for low-income
individuals for up to 12 additional months.--Section 1925 (42
U.S.C. 1396r-6) is further amended--
(A) by redesignating subsections (c) through (f) as
subsections (d) through (g), respectively; and
(B) by inserting after subsection (b) the
following:
``(c) State Option of Up to 12 Months of Additional Eligibility.--
``(1) In general.--Notwithstanding any other provision of
this title, each State plan approved under this title may
provide, at the option of the State, that the State shall offer
to each family which received assistance during the entire 6-
month period under subsection (b) and which meets the
applicable requirement of paragraph (2), in the last month of
the period the option of extending coverage under this
subsection for the succeeding period not to exceed 12 months.
``(2) Income restriction.--The option under paragraph (1)
shall not be made available to a family for a succeeding period
unless the State determines that the family's average gross
monthly earnings (less such costs for such child care as is
necessary for the employment of the caretaker relative) as of
the end of the 6-month period under subsection (b) does not
exceed 185 percent of the official poverty line (as defined by
the Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to a family of the size
involved.
``(3) Application of extension rules.--The provisions of
paragraphs (2), (3), (4), and (5) of subsection (b) shall apply
to the extension provided under this subsection in the same
manner as they apply to the extension provided under subsection
(b)(1), except that for purposes of this subsection--
``(A) any reference to a 6-month period under
subsection (b)(1) is deemed a reference to the
extension period provided under paragraph (1) and any
deadlines for any notices or reporting and the premium
payment periods shall be modified to correspond to the
appropriate calendar quarters of coverage provided
under this subsection; and
``(B) any reference to a provision of subsection
(a) or (b) is deemed a reference to the corresponding
provision of subsection (b) or of this subsection,
respectively.''.
(b) State Option To Waive Receipt of Medicaid for 3 of Previous 6
Months To Qualify for TMA.--Section 1925(a)(1) (42 U.S.C. 1396r-
6(a)(1)) is amended by adding at the end the following: ``A State may,
at its option, also apply the previous sentence in the case of a family
that was receiving such aid for fewer than 3 months, or that had
applied for and was eligible for such aid for fewer than 3 months,
during the 6 immediately preceding months described in such
sentence.''.
(c) Extension of Sunset for TMA.--
(1) In general.--Subsection (g) of section 1925 (42 U.S.C.
1396r-6), as so redesignated under subsection (a)(2)(A), is
further redesignated as subsection (i) and is amended by
striking ``2003'' and inserting ``2010''.
(2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C.
1396a(e)(1)(B)), as so amended, is amended by striking
``September 30, 2003'' and inserting ``the last date (if any)
on which section 1925 applies under subsection (i) of that
section''.
(d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 (42 U.S.C. 1396r-6), as amended by subsections (a)(2)(A)
and (c)(1), is amended by inserting after subsection (f) the following:
``(g) Additional Provisions.--
``(1) Collection and reporting of participation
information.--Each State shall--
``(A) collect and submit to the Secretary, in a
format specified by the Secretary, information on
average monthly enrollment and average monthly
participation rates for adults and children under this
section; and
``(B) make such information publicly available.
Such information shall be submitted under subparagraph (A) at
the same time and frequency in which other enrollment
information under this title is submitted to the Secretary.
Using such information, the Secretary shall submit to Congress
annual reports concerning such rates.''.
(e) Coordination of Work.--Section 1925(g) (42 U.S.C. 1396r-6(g)),
as added by subsection (d), is amended by adding at the end the
following:
``(2) Coordination with administration for children and
families.--The Administrator of the Centers for Medicare &
Medicaid Services, in carrying out this section, shall work
with the Assistant Secretary for the Administration for
Children and Families to develop guidance or other technical
assistance for States regarding best practices in guaranteeing
access to transitional medical assistance under this
section.''.
(f) Elimination of TMA Requirement for States That Extend Coverage
to Children and Parents Through 185 Percent of Poverty.--
(1) In general.--Section 1925 (42 U.S.C. 1396r-6) is
amended by inserting after subsection (g), as added by
subsection (d), the following:
``(h) Provisions Optional for States That Extend Coverage to
Children and Parents Through 185 Percent of Poverty.--A State may meet
(but is not required to meet) the requirements of subsections (a) and
(b) if it provides for medical assistance under section 1931 to
families (including both children and caretaker relatives) the average
gross monthly earning of which (less such costs for such child care as
is necessary for the employment of a caretaker relative) is at or below
a level that is at least 185 percent of the official poverty line (as
defined by the Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget Reconciliation Act
of 1981) applicable to a family of the size involved.''.
(2) Conforming amendments.--Section 1925 (42 U.S.C. 1396r-
6) is amended, in subsections (a)(1) and (b)(1), by inserting
``, but subject to subsection (h),'' after ``Notwithstanding
any other provision of this title,'' each place it appears.
(g) Requirement of Notice for All Families Losing TANF.--Subsection
(a)(2) of section 1925 (42 U.S.C. 1396r-6) is amended by adding at the
end the following flush sentences:
``Each State shall provide, to families whose aid under part A
or E of title IV has terminated but whose eligibility for
medical assistance under this title continues, written notice
of their ongoing eligibility for such medical assistance. If a
State makes a determination that any member of a family whose
aid under part A or E of title IV is being terminated is also
no longer eligible for medical assistance under this title, the
notice of such determination shall be supplemented by a 1-page
notification form describing the different ways in which
individuals and families may qualify for such medical
assistance and explaining that individuals and families do not
have to be receiving aid under part A or E of title IV in order
to qualify for such medical assistance. Such notice shall
further be supplemented by information on how to apply for
child health assistance under the State children's health
insurance program under title XXI and how to apply for medical
assistance under this title.''.
(h) Extending Use of Outstationed Workers To Accept Applications
for Transitional Medical Assistance.--Section 1902(a)(55) (42 U.S.C.
1396a(a)(55)) is amended by inserting ``and under section 1931'' after
``(a)(10)(A)(ii)(IX)''.
(i) Effective Dates.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to calendar
quarters beginning on or after October 1, 2005, without regard
to whether or not final regulations to carry out such
amendments have been promulgated by such date.
(2) Notice.--The amendment made by subsection (g) shall
take effect 6 months after the date of enactment of this Act.
(3) Delay permitted for state plan amendment.--In the case
of a State plan for medical assistance under title XIX of the
Social Security Act which the Secretary of Health and Human
Services determines requires State legislation (other than
legislation appropriating funds) in order for the plan to meet
the additional requirements imposed by the amendments made by
this section, the State plan shall not be regarded as failing
to comply with the requirements of such title solely on the
basis of its failure to meet these additional requirements
before the first day of the first calendar quarter beginning
after the close of the first regular session of the State
legislature that begins after the date of enactment of this
Act. For purposes of the previous sentence, in the case of a
State that has a 2-year legislative session, each year of such
session shall be deemed to be a separate regular session of the
State legislature.
TITLE VII--EFFECTIVE DATE
SEC. 701. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this Act, this Act
and the amendments made by this Act shall take effect on October 1,
2005.
(b) Exception.--In the case of a State plan under part A or D of
title IV of the Social Security Act which the Secretary of Health and
Human Services determines requires State legislation in order for the
plan to meet the additional requirements imposed by the amendments made
by this Act, the effective date of the amendments imposing the
additional requirements shall be 3 months after the first day of the
first calendar quarter beginning after the close of the first regular
session of the State legislature that begins after the date of
enactment of this Act. For purposes of the preceding sentence, in the
case of a State that has a 2-year legislative session, each year of the
session shall be considered to be a separate regular session of the
State legislature.
SEC. 702. EXTENSION THROUGH REMAINDER OF FISCAL YEAR 2005.
(a) In General.--Except as otherwise provided in this Act and the
amendments made by this Act, activities authorized by part A of title
IV of the Social Security Act, and by sections 429A, 510, 1108(b),
1130(a), and 1925 of such Act, shall continue through September 30,
2005, in the manner authorized for fiscal year 2004, notwithstanding
section 1902(e)(1)(A) of such Act, and out of any money in the Treasury
of the United States not otherwise appropriated, there are hereby
appropriated such sums as may be necessary for such purpose. Grants and
payments may be made pursuant to this authority through the fourth
quarter of fiscal year 2005 at the level provided for such activities
through the fourth quarter of fiscal year 2004, except that in the case
of section 403(a)(4) of such Act the level of authority shall be $0.
(b) Effective Date.--Subsection (a) shall take effect on the date
of enactment of this Act.
Calendar No. 60
109th CONGRESS
1st Session
S. 667
_______________________________________________________________________
A BILL
To reauthorize and improve the program of block grants to States for
temporary assistance for needy families, improve access to quality
child care, and for other purposes.
_______________________________________________________________________
March 17, 2005
Read twice and placed on the calendar